Fund buying helps Indian shares gain over one percent
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Fund buying helps Indian shares gain over one percent

Thursday, 28 August 2003, 07:00 Hrs
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MUMBAI: Large-scale buying by domestic mutual funds and foreign institutional investors in shares of technology and banking companies helped India's blue-chip stock market index end over one percent higher Wednesday.

The stock market barometer 30-share Bombay Stock Exchange sensitive index or Sensex closed at 4,205.66, representing a gain of 53.27 points or 1.28 percent over its previous session's close.

"The market has entered a bullish phase and the gaining momentum is likely to continue for quite some time to come. The rally is getting support from all around buying," said a fund manager with a foreign brokerage firm.

"The strong macroeconomic fundamentals are encouraging investors to enlarge positions. Fund managers are building new positions on hopes that the market index will cross the 5,000-mark by next month," the fund manager added.

"The blasts in the city has become a completely non-issue now as far as the market is concerned and the operators are just focussing on market fundamentals for firming up their investment plans."

The blue-chip share market index closed nearly three percent lower Monday on across-the-board selling pressure after the powerful bomb blasts rocked the country's financial capital of Mumbai.

The market, however, bounced back with a vengeance Tuesday, disregarding the twin bomb blasts in the country's financial capital that killed about 50 people and closed with a gain of 3.7 percent.

At least 52 people were killed and over 200 injured in the two devastating explosions Monday afternoon in a grim throwback to the serial terror blasts that rocked the city a decade ago.

In the technology sector, Infosys Technologies, India's largest listed software exporter, rose 3.1 percent higher at 3,852 on large-scale institutional buying on earning growth hopes.

Hyderabad-based Satyam Computer, the fourth-largest software exporter, gained 4.7 percent to touch 217.60 and HCL Technologies, a New Delhi-based software development and services major, ended 2.9 percent higher at 172.60.

In the old economy sector, shares of banking companies such as Bank of India advanced nearly 14 percent to 54.30 and Bank of Baroda closed with a gain of 7.3 percent at 150 on fresh institutional buying.

Consumer goods giant Hindustan Lever ended 0.3 percent higher at 189.60 and Reliance Industries, India's largest refiner and petrochemicals maker, closed with a gain of 0.4 percent at 393.10.

Other major gainers in the sector included ICICI Bank, Larsen and Toubro, State Bank of India, ITC, Bharat Heavy Electricals, Hindustan Petroleum Corporation, and Andhra Bank.



Source: IANS
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