NSE, DSE join world
recovery, Nifty
gains 74.40 points
Shares staged a smart recovery in major
Indian stock exchanges as Wall Street wiped out over half of the
losses it suffered on Monday and most of the Asian markets
bounced back from their collapse on Tuesday with global investors finding equities cheap.
The Wednesday recovery in the National Stock Exchange in Bombay was almost as swift as the losses on Tuesday. The Nifty gained 74.40 points to
close the eventful day at 1107. The Midcap Index closed higher at
1253.85 after seeing a record gain of 72.35 points.
The benchmark Delhi Stock Exchange Index notched over 53 points
at 806.72, as reports of stocks rebounding in the major global
centres reached the foreign fund managers in the Indian capital.
The country's premier bourse, the Bombay Stock Exchange, has missed the action as it was closed on Tuesday and Wednesday on account of Diwali. On Thursday, muhurat trading will be held heralding the year Samvat 2054.
DSE President Deepak Chaudhry said the trend in the Indian
markets was completely influenced by the buying spree in the
international markets. ''Sellers have turned buyers returning to the
market with renewed vigour,'' he added.
Analysts said after a historic fall in prices on Tuesday, fund
managers found equities of bluechip companies going at cheap values.
The confidence-building measure was initiated by International
Business Machines which announced it would be buying back its
equity.
United States President Bill Clinton's reassurance to investors that the US
economy was in a robust shape also contributed to investor confidence.
Bluechip stocks like Hindustan Lever, ITC, Reliance
Industries, Arvind Mills, Asian Hotels, Bajaj Auto, BSES, Escorts,
Hindustan Motors, ICICI, IPCL, LML and Larsen and Toubro gained with the
foreign institutional investors pumping in money in the Indian bourses.
On the National Stock Exchange, stock prices recovered sharply on Wednesday following the strong rebound in the world share markets.
The Nifty gained by 74.40 points to 1107.00
points, while the Midcap Index closed higher at 1253.85
points, showing a record gain of 72.35 points over the previous
close of 1181.50 points.
The total turnover on the NSE reported during the day was Rs
22.8 billion.
"The market was very good on Wednesday, since it has made strong
recovery. However, the market players are still waiting for
Dow Jones overnight performance. If it would come positive,
normalcy would return immediately," said an analyst at the Skindia
Finance Ltd, an international investor group.
The market trend was very much positive on the NSE, and
the MTNL scrip was in the spotlight, he said.
Reflecting the recovery mood, the NSE-50 Index opened
at 1033.00, touched the day's high of 1108.50 and later ended at
1107.00, netting a gain of 74.40 points over the previous close.
ITC topped the list of turnover by registering highest
turnover of Rs 8.6 billion, followed by Reliance Industries
Limited Rs 6.3 billion, State Bank of India Rs 1.6 billion,
Tata Tea Rs 1.2 billion and MTNL Rs 910 million.
Among the gainers, MTNL recovered smartly by Rs 23.25 or 10.00
per cent to Rs 255.80, Guj Amb Cement gained by Rs 26.30 or 9.95
per cent to Rs 290.75, GE Ship up by Rs 4.30 or 9.92 per cent to
Rs 47.65, ITC moved up by Rs 51.35 or 9.75 per cent to Rs 577.95
while Reliance was up by Rs 33.00 or 9.67 per cent to Rs 374.15 over
their respective previous closing.
ABB was the only major loser, during the day. The scrip lost by
Rs 1.40 or 0.22 per cent to Rs 638.55.
Hectic activity was also observed at the other counters and
scrips registered record turnover. TISCO registered a turnover
of Rs 57.44 million, followed by L&T Rs 36.55 million, ACC Rs
27.69 million, TELCO Rs 24.60 million, Castrol Rs 22.27 million, Hind
Lever Rs 18.11 million, HPCL Rs 12.85 million, Hero Honda Rs 12.38
million, Bajaj Auto Rs 12.11 million, BHEL Rs 90 million, LML Rs 8.77
million, ICICI Rs 6.87 million, HDFC Rs 66 million, Infosys Tech
Rs 64.1 million, BSES Rs 5.98 million, Rel Capital Rs 5.26 million,
Nestle Rs 4.84 million, Soft Solint Rs 4.62 million, Rel Petro Rs 4.62
million and Colgate Rs 4.56 million.
On account of Diwali on Thursday, the market will remain open only between 1730 hours to 1930 hours
IST for muhurat trading.
The wholesale debt market of NSE witnessed trades
worth Rs 5 billion. The 11.19 per cent government loan maturing in
2005 was traded for Rs 75 million at a weighted yield of 10.66 per
cent; the 10.85 per cent government loan maturing in 2001 was traded
for Rs 70 million at a weighted yield of 9.90 per cent; and the 364-day Treasury bill maturing on April 24, 1998, was traded for Rs 25 million at a weighted yield of 7.54 per cent.
EARLIER REPORT:
Indian bourses join world crash
UNI
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