Sensex Jumps 67 Points To Six-Week High

Mumbai, Aug 30: | Updated: Aug 31 2002, 05:30am hrs
A broad-based rally on Friday pushed the BSE-30 Sensex up by 67 points to a six-week high on Friday. The gains were led by information technology and select index-weight stocks.

Dealer said: Buying was seen across the board in most sensex weight and IT stocks by foreign institutional investors (FIIs) and speculators. They said: Mar-ket also took courage following reports that government will announce a bailout package for UTI shortly and also that UTI is unlikely to make a distress selling in the open markets and big sales would be pressed mostly through off-market deals either through strategic sale or through natural realisation open offer or buyback schemes. u

The BSE-30 share sensex closed up 67.07 points at 3,181.23 point as against the opening levels of 3,110.98 points. The sensex hit an intra-day high of 3,185.08 points and a low of 3,109.97 points. On the National Stock Exchange (NSE), the S&P CNX Nifty closed up 23.35 points at 1,010.60 points.

With todays gain the Sensex has rallied 231.14 point or 7.84 per cent in last three weeks after hitting a nine month low of 2,950.09 points on August 8.

Tridip Pathak, equity fund manager, IDBI Principal AMC said: The valuations and earning numbers were always good but dicey situation of liquidity and sentiment was putting the brakes on the upward march.

The external events to the market effected the sentiment and held back the market. With the sentiments brightening, the positive mood has prevailed. Todays rally was basically broad-based, and in the longer run horizon also a broad-based rally is expected to continue. We expect a smart rally, lots of stocks are undervalued, added Mr Pathak.

Dealer said: The market is also taking strength on back of sustained buying by FIIs in the last few trading sessions after remaining sidelined in the past few weeks. FIIs were net buyers of equity shares in the tune of Rs 100 crore in the last three trading days, and there are talks in the market that FIIs have purchased very big way on Friday too.

Among the heavy-weight gainers on the BSE included, Infosys up Rs 133.40 at Rs 3,619.05, Hindustan Lever up Rs 8.25 at Rs 186.70, Reliance Industries up Rs 5.50 at Rs 255.30.

Amongst the software stocks, Digital closed up Rs 38.55 at Rs 623.75 and Satyam up Rs 3.50 at Rs 240.50.

However, the stock futures and nifty futures continued to be traded in discount on NSE, a clear indication that cautious trend is still prevailing in the market and speculators are not expecting a sustained bull run.

In the derivatives section of NSE September futures of Satyam closed at Rs 238.85 as against the cash market close of Rs 239.95, Infosys at Rs 3,583.75 on the futures segment to the cash market close of Rs 3,621.20.

A derivatives dealer at Prabhudas Lilladher Securities said: Buying in the cash market is not integrated with the futures market. The aberration is bascially because of institutional buying was witnessed in the cash market while they were not that aggressive in the derivatives market.