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Sensex bounces back on fresh buying

MUMBAI SEPT. 16. Overcoming the initial setback caused by the Supreme Court's verdict to stay the disinvestment of the petro majors HPCL and BPCL, share values recovered smartly on the Bombay Stock Exchange today on fresh bouts of heavy buying from all quarters with the BSE-30 index rallying by 80.92 points to end at 4274.75.

Despite a positive opening, major PSEs met with heavy nervous selling after news filtered in on the SC ruling, staying the Government's disinvestment process of the PSEs, without Parliament's approval. As a result, the Sensex touched a low of 4134.69.

However, the impact of the court ruling was short-lived after a BJP statement that the judgment would not have an impact on other PSEs as it challenged only the mode of disinvestment of the two oil majors, leading to prices of majority of shares, including those of PSEs, shooting up on fresh buying.

Bargain hunting at attractive lower levels by foreign funds largely helped the sharp rally after mid-session even as the two affected PSEs bore the brunt of selling, a dealer said.

Mirroring the market trend, the BSE-30 share sensitive index started on a positive note at 4195.10 and touched a high of 4290. Later, on fresh demand, it bounced back and closed at 4274.75, showing a sharp rise of 1.93 per cent over the last close of 4193.83. Elsewhere, the BSE-PSE index opened weak at 2805.77 and after falling to a low of 2640.59, recovered smartly to end at 2857.34, showing a good gain of 45.02 points.

HPCL, after a better start at Rs. 400.90, crashed to a low of Rs. 326. Later, it recovered to end at Rs. 344.90, still showing a fall of Rs. 45.45 over yesterday's close of Rs. 390.35.

The other PSE oil company, BPCL, which suffered due to the SC ruling, started weak at Rs. 329.90, declined further to end at Rs. 323.35, showing a loss of Rs. 6.90.

Elsewhere, prices of Castrol, Dr. Reddy,'s, IBP, Kochi Refinery, Maruti, MTNL, Oriental Bank, GACL and Zee Tele also closed weak due to heavy offering.

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