The Hindu : Business : Sensex rebounds on FII buying

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Wednesday, Aug 31, 2005

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Business

Sensex rebounds on FII buying

MUMBAI: Stocks on Tuesday bounced back on the Bombay Stock Exchange, lifting the benchmark Sensex by a steep 111 points on hectic purchases from foreign institutional investors and local mutual funds amid a possible hike in domestic fuel prices. BSE's benchmark 30-share sensitive index (Sensex) opened strong at 7681.67 and later rallied smartly to the intra-day high of 7758.36 before ending the day at 7745 against yesterday's close of 7634.43, a net rise of 110.57 points or 1.45 per cent. The FIIs, who had slowed down their net purchases in the last couple of weeks, were believed to be heavy buyers in blue chip stocks. They reported relatively small net investments of Rs. 117 crore last Friday.

Domestic mutual funds and operators joined the bandwagon and made good commitments in a number of key counters.

Crediting the positive turnaround to heavy fund inflow, brokers said the market totally discounted reports that the Reserve Bank of India had advocated a hike in fuel prices to lessen the strain on the economy and the government.

Meanwhile, global oil prices were quoted little over $67 a barrel in Asian trading on Tuesday after hitting an all time high of $70.80 on Monday.

IT, metal and bank stocks attracted investors' attention. Infosys Technologies, Satyam Computer, TCS, Tata Steel, SBI, ICICI Bank, HDFC Bank, HDFC, Dr. Reddy's Lab, RIL, ONGC, Maruti Udyog, NTPC, Wipro, ITC, Grasim and ACC recorded sharp gains. — PTI

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