Markets rebound, Sensex gains 196 pts

Markets rebound, Sensex gains 196 pts
ENS ECONOMIC BUREAU

MUMBAI, JAN 12: More than stock prices, volatility reigned supreme on the stock markets once again. Share prices bounced back smartly on the Bombay Stock Exchange (BSE) today wiping out most of the previous day's losses on in highly volatile activity. After Tuesday's 222-point fall, Sensex recovered by about 195 points, or 3.68 per cent, thanks to Hindustan Lever which gained smartly by Rs 195.95 and Infosys.

``The broader market remained weak. Hindustan Lever and Infosys Technologies led the rally,'' said a dealer, adding that domestic funds were buying blue-chip index shares in an otherwise thin market. Data provided by the BSE showed declining stocks beating advancing stocks 1102 to 788, while 174 issues remained unchanged. ``The market is still nervous about the income-tax survey on the premises of leading stock broker Ketan Parekh. Operators are keenly watching the developments,'' said broker D Pawan, adding, ``the high volatility remains a cause for concern. Sensex has been jumping up and down on a daily basis.''

Brokers said that apart from start of new settlement on the National Stock Exchange (NSE), impressive working results for the third quarter of current fiscal by several software computer companies like Matsek and NIIT too had a positive impact on the market sentiments. The National Stock Exchange index closed 3.71 per cent or 58.40 points up at 1,630.90.

The rally, which was confined to the infotech stocks in the initial stage, later spread to cyclical and heavy-weighted fast moving consumer goods (FMCG) stocks contributing to the rise in Sensex. Despite a substantial fall in the Nasdaq composite index last night, infotech stocks also were in the limelight on expectations of excellent growth in earnings of this sector with NIIT reporting about 125 per cent increase in the net profits for the third quarter.

Dealers said foreign funds which pressed net sales in the tune of $105.5 up to January 10 remained mostly on the sidelines on Wednesday. In the specified group, ten counters including four index-based scrips were locked in the upper circuit filter at the close while Wockhardt, Mahindra and Mahindra and Ashok Leyland hit the lower price band due to selling pressure.

The volume of business on the BSE dropped sharply to Rs 2,729.35 crore compared to yesterday's turnover of Rs 4,896.90 crore. Zee Telefilms clocked the highest turnover of Rs 288.30 crore and its scrip firmed up by Rs 40 to Rs 1,060. Satyam computer gained Rs 30 at Rs 2,382, Reliance Rs 15.25 at Rs 303.80, Infosys Tech Rs 396.95 at Rs 13,001, Pentafour Software Rs 57 to Rs 1235 and GACL Rs 21.75 to Rs 294.25.

Wednesday's recovery was also because several shares were available at bargains after a four per cent fall on Tuesday. The market is currently driven by speculators in the absence of active buying interest, an analyst said.

25 more dud cos in BSE's Z group
MUMBAI: The Bombay Stock Exchange has decided to place the equity shares another dud 25 companies in the `Z' group'. These companies have failed to comply with the rules and regulations of the exchange listing agreement. These are low-priced scrips and projects of some of them have not taken off.

The companies are: Harvest Financials, Himtubes, Hindustan Finstock, Hindustan Magnetics, Hi-tech Drugs, H-Lon Hosiery, Icnet Ltd, Incap Financial Services, Indag Products, India Castor, Indian Bright Steel Co, Indiana Dairy Specialities, Indo Bosch Gems and Jewellary, Jagdambay Agri Genetics, Jain Granites and Projects India, Janzen Castmetals, Jay Rapid Roller, Jayanti Business Machines, Kalyan Marine and Agro Products, Kamaldeep Synthetic, Karan Fibres and Fabrics, Karan Industries, Karnav Leather Chemicals, Keshariya Spinners and Kiev Finance.