Mumbai/New Delhi, Mar 20: The Sensex gave him only 20 points, a token welcome to the new finance minister. But the stock markets have already started generating its wish list and the ground is being prepared for a longer shot in the days to come. Optimism and expectations go together. ``I am a little more optimistic, more positive,'' was how Harshawelcomed the new finance minister. Neel Dalal, a BSE member, has already started looking forward to the budget, ``which is expected to be market friendly.''ND Agarwal and Ashok Agarwal of the Delhi Stock Exchange are a little more specific. They see interest rates coming down what with Yashwant Sinha keen on ensuring a level-playing field for domestic industry. ``If the interest of the domestic industry is to be considered, I expect interest rates to come down and a possible hike in customs duty, though selectively,'' says ND Agarwal. He is cautiously bullish: ``The market will move up and it can cross the 4,000-level.''
Ashok Agarwal, former president of DSE,sees the Sensex scaling the 4,600-mark once again this year.
The talk of swadeshi does not worry many very much. The priorities have to be clear. On the other hand, ``we have been talking too much videshi,'' quips Harshad Mehta, pointing out that the present government is clear about the reforms. ``We need bold decisions now, the mood indicates they will come by,'' he adds.
Amidst brokers exercising caution, the market shifted focus away from Sensex heavyweights to selective buying in other counters which could possibly benefit from the new governments policies.
Reflecting the buoyant and firm undertone of the market on the last day of the financial year on the BSE, the Sensex held strong above the crucial barrier of 3,800 to finally close at the day's high of 3,840.72, registering a gain of 19.53 points.
Across-the-board buying at MNC, fast-moving consumer goods (FMCG), pharma and software stocks continued to be the prominent feature of the day.``The rally which kicked off at the MNC counterstrickled down to the swadeshi counters, too,'' said a dealer at an institutional brokerage outfit.
According to market sources, FIIs led by Morgan Stanley and Oppenheimer were reported to have placed huge buy orders at the counters of Knoll Pharma, Nestle, Reckitt & Colman, ABB, Britannia, Hoechst Marion, Infosys, BFL Software, Wipro, German Remedies, Bata, Philips and Telco.
The indications of higher badla left a section of marketmen in a sceptical mood. However, experts explain that the kind of bull run we witness in the era of optimism and stability coupled with sound state of the currency, the higher carryforward rates would necessarily mean an appreciation in the indices.
UTI was rumoured to have bought huge chunks of Glaxo, Bata and Wockhardt.``The takeover and open offer stories have shaken up the markets completely,'' said a BSE broker. ``Swadeshi policies cannot avoid the consolidation which is driven by market forces,'' he explained.
Nestle continued to be frozen on the BSE at Rs 412.25,the weekly price filter. Sources, however, confirmed that the stock was being traded at a premium of over 6 per cent at the grey markets. On the NSE the stock was frozen at Rs 435.25, with a net outstanding buy order of 2.25 lakh shares. Oppenheimer was rumoured to have placed huge buy orders for Tisco.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
