Mumbai, Feb 27: The pre-election rally on the local bourses saw the 30-share BSE Sensitive Index breach the crucial psychological barrier of 3,600 to close at 3,622.22 on Friday, registering a net gain of 50.59 points. The last day of the current settlement on the Bombay Stock Exchange saw hectic trading activity in cement and MNC stocks, with the exchange recording a turnover of Rs 1,214.33 crore. The NSE recorded a phenomenal rise in its turnover to touch a high of Rs 1,869.74 crore.Rumours that leading foreign brokerage houses were placing huge buy orders at the counters of ACC, MTNL, ITC, Reliance, L&T, ABB, BHEL and Pond's saw local punters rush to make fresh commitments in these counters.
According to market sources, Credit Lyonnais was reported to have bought a chunk of ACC shares. The stock attracted a circuit filter at the upper end of the price band and closed at Rs 1,457 on the BSE. However, it closed at Rs 1,448.15 on the NSE, registering a gain of 9.73 per cent over Thursday's close. Thescrip was quoting at Rs 1,480 in kerb deals. ``The replacement cost theory seems to have influenced market valuations,'' said a senior analyst with an FII brokerage outfit.
Mirroring the sudden rush for cement stocks, following the offer for Raasi Cement, Priyadarshini Cement touched the upper end of the price band at Rs 22.50. Shri Vishnu Cements also attracted a circuit filter at Rs 13.50 and Gujarat Ambuja traded firm at Rs 330. ``The institution-led rally strengthened with the local punters and investors at large getting on to the bandwagon,'' said a BSE broker. ``A consensus on BJP's victory seems to have prompted the market participants to change their long-term perception of the market,'' he explained.
Explaining the logic for the current spree of buying at higher levels, market analysts explain that the index is heading towards the 4,000 level and every participant would like to be a part of the pre-election rally. Among the pivotals ITC closed at a new 52-week high of Rs 668.05 on the NSE, with ahuge turnover of Rs 697.84 crores on the NSE and Rs 423 crore on the BSE.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
