Sensex bounces back

MUMBAI, MAY 15. The sensex bounced back from its early lows and even ended with modest gains, reflecting a sharp recovery on the Bombay Stock Exchange today as foreign institutional investors (FIIs) and local financial institutions made widespread purchases.

Hitting a low at 3420.14, immediately after the trading commenced, the sensex reflected an adverse impact on the decision of the Securities and Exchange Board of India (SEBI) to ban badla as disappointed operators and speculators pressed heavy sales to wind up outstanding positions as required by SEBI's directive.

The initial depressed situation was salvaged by the quick intervention of financial institutions and heavy purchases by FIIs, which welcomed SEBI's decision to do away with carry forward system in a bid to get rid of price manipulation, market sources said.

The BSE sensitive index later turned around with a strong consistent rally to close at 3576.96 against yesterday's close of 3568.93, netting a minor gain of 8.03 points. The BSE-100 index improved by 5.84 points to 1724.10 from 1718.26.

The major index heavyweight RIL received sizable support from company circles and not only recovered initial sharp losses but also posted impressive gains. Had it not been for discouraging overseas news about a fresh fall in the Nasdaq composite index last night that certain technology stocks were under pressure, the market sentiment would have been still bullish. Though the declines outnumbered advances, the benchmark survived to close in positive territory due to smart upsurge in select index-based shares. In the specified group, 126 including 17 index family counters suffered losses while 48 others closed with gains.

- PTI

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Section  : Business
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