Market moves up after initial plunge; ends 120 pts up

Market moves up after initial plunge; ends 120 pts up
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First Published: Fri, May 25 2007. 05 45 PM IST
Updated: Fri, May 25 2007. 05 45 PM IST
Mumbai: The stock market on 25 may 2007 bounced back after plunging in early trade and ended 120 points up on heavy buying by some private mutual funds.
In sustained volatility, the Bombay Stock Exchange 30-share Sensex tumbled 172 points to the day’s low of 14,046.06 following weakness in Asian markets and reports that the Reserve Bank of India is mulling over another hike in the cash reserve ratio.
The Sensex, however, rebounded from the lows and rallied smartly to end the day at 14,338.45, a net rise of 120.34 points or 0.85% over the previous close of 14,218.11.
Similarly, the broader S&P CNX Nifty of the National Stock Exchange (NSE), which touched a trading low of 4,141.35, later closed at 4,248.15, up 43.25 points or 1.03% from previous close of 4,204.90.
Attributing the positive turnaround to improvement in inflation data, market players said a leading private mutual fund was heavy buyer in select blue chip counters, including key IT and Capital Goods stocks.
Taking a cue from sudden buying spree, operators and retail investors too covered short positions in a few shares, which were driven lower in the last two days.
Investors, however, seemed concerned that fairly good amount of liquidity is expected to drained by the forthcoming IPOs from some big corporates from next month onwards.
Inflation fell for the fourth consecutive week to 5.27% in the week ended 12 May.
IT counters attracted good demand after the rupee’s fall against dollar.
The market breadth became positive. 1,418 counters showed gains against 1,153 losers.
The trading volume shot up to Rs5,044.67 crore from Rs4,458.35 crore on 24 May. Bharti Airtel clocked the highest turnover of Rs440,07 crore (FII deals) followed by Suzlon Energy (Rs230.37 crore), Advanta (Rs179.93 crore), RIL (Rs174.33 crore) and Divi’s Lab (Rs139.52 crore).
The broad-based BSE-100 index recovered by 68.07 points to close at 7,373.70 from previous close of 7,305.63.
The BSE-200 index and the Dollex-200 were quoted up at 1,744.59 and 715.76 at close compared to previous close of 1,729.80 and 710.04 respectively. The BSE-500 Index firmed up by 48.17 points to 5,575.24 from last close of 5,527.07 and the Dollex-30 ended higher at 2,900.90 from 2,877.97.
In Asian markets, Hong Kong’s Hang Seng, Japan’s Nikkei and Singapore Straight Times tumbled by more than 1%, while Taiwain’s weighted Index and South Korea’s kospi showed marked losses.
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First Published: Fri, May 25 2007. 05 45 PM IST
More Topics: Money Matters | Equities |