The Hindu : Business : Sensex gains 40 points

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Saturday, Aug 26, 2006

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Business

Sensex gains 40 points

MUMBAI: Led by a sharp rise in banking major, State Bank of India (SBI), the Bombay Stock Exchange Sensex improved by another 40 points to close at 11572.20, despite heavy pull-out by foreign funds from the derivatives segment. The market erased more than half of the early gains due to weekend profit taking in a volatile movement at the fag end as Asian markets ended mixed after initial smart rally.

SBI attracted heavy buying after the Union Cabinet on Thursday approved amendments to the SBI Act of 1995, which would allow the bank to increase its paid-up capital and also proposed to reduce the Reserve Bank of India (RBI) stake to 51 per cent by offering additional equity to the public to raise funds, brokers said. It also proposed to reduce the face value of shares, resulting operators and retailers to go on buying spree.

Resuming on a strong note at 11589.35 against Thursday's close of 11531.95, the BSE-30 share sensitive index remained in the positive terrain throughout the day to touch a high of 11635.25, before concluding at 11572.20, a net rise of 40.25 points. On the National Stock Exchange, the S&P CNX Nifty improved by 15.55 points to 3385.95.

Meanwhile, foreign institutional investors continued their selling in derivatives and reportedly pressed sales worth Rs. 752.33 crore on Thursday. — PTI

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