The Hindu : Business : Sensex gains 616 points

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Friday, Jun 16, 2006

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Sensex gains 616 points

MUMBAI: The Bombay Stock Exchange sensitive index (Sensex) on Thursday notched its biggest single-session gain, 616 points, powered by aggressive purchases by foreign institutional investors (FIIs). The previous highest single-day gain was recorded on June 9, when the market rebounded by 515 points after an abnormal slide of 1156 points in the four preceding sessions. This time, the turnaround happened after a fall of 881 points in three days.

The BSE 30-share Sensex, started strong at 9133.36 and galloped to the day's high of 9589.05 before closing at 9545.06, a jump of 615.62 points or 6.89 per cent.

The FIIs, who covered positions in the Futures segment on Wednesday, suddenly became excessively forceful in their purchases as the present lower levels offered lot of buying opportunity and huge returns in the short-term, market players said. The markets had reached the oversold zone, necessitating a corrective bounce notwithstanding the negatives.

A sharp rally in world markets, however, came as a shot in the arm, providing the required impetus for a change in sentiment.

The FIIs were net buyers to the tune of Rs. 584 crore in the futures and options segment on June 14.

PTI

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