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Our Market Bureau
Mumbai, Nov 13: After Reliance Industries, it was Tata stocks which hogged the limelight on the local bourses. Reflecting the change in mood after reports of Reliance denying any buy-back move and the subsequent deal with UTI, the BSE-30 share Sensitive index plunged below the crucial mark of 3,000 points to close at 2,976.12 points registering a net decline of 33 points.
Tisco registered a phenomenal volume of 30.69 lakh shares traded in the band of Rs 89-Rs 94. The stock closed at Rs 92 registering a net gain of over 2 per cent. On the negotiated segment of the BSE, the stock registered two cross deals of 10,000 shares each at a price of Rs 94.40 and Rs 87.10 respectively. Similarly, Telco registered a smart recovery and closed at Rs 140.50 with a volume of 34 lakh shares on the BSE.
According to market sources, institutional buying coupled with concentrated purchases by Tata Sons reflected on the price and volume jump. However, the buy orders made by Tata Sons could not be confirmed.
``Theundercurrent of the market continues to be buoyant,'' said Neel Dalal, BSE broker. ``History has proved that in a bull run when institutional participants press sales the market fails to react negatively,'' he added.
Market sources also hinted that the Tata stocks have been rising in the midst of fresh purchases made by UTI. The institution according to sources has adopted the strategy of booking profits at the high priced counters like ITC, Hindustan Lever, VSNL and Ranbaxy and picking up low priced stocks with attractive valuations. A section of the market also believes that UTI, like other fund managers has started identifying commodity sector counters which will move around with the recovery in the economy.
The sharp rise in the prices of select pharma stocks like Glaxo, Wyeth Laboratories, Rhone-Poulenc and Burroughs Welcome has been attributed to institutional and FII purchases. FIIs were also rumoured to have bought at the counters of ICI, Indian Aluminium, Bhel and Tata Infotech. FIIs werereported to have bought stocks worth Rs 28 crore on the BSE, while on the NSE they were net sellers to the tune of Rs 2 crore. Domestic institutions were also net buyers on the BSE to the tune of Rs 17 crore.
At the Reliance counter although the initial euphoria was curtailed by the company's denial, market continued to be rife with rumours that a leading FII, Credit Lyonnais has warehoused over 37 lakh shares of Reliance at lower levels. The counter witnessed huge volumes of over 3 crore shares on the local bourses. On the negotiated segment of the BSE, the stock registered a volume of 30,000 shares in the price band of Rs 122.20 and Rs 124.20. On the GDR front, Reliance shed 4 per cent to trade at $ 6.18 however, the premium expanded by 7.40 per cent against 5.17 per cent on Thursday on account of the steep fall in the underlying stock, which closed at Rs 121.85.
Rumours of buy-back coupled with institutional support saw the MTNL counter trade with a price spread of over Rs 10, in the band of Rs 199.90and Rs 188.10. However profit booking and end of account considerations saw the stock shed the gains to close at Rs 189.95, registering a net decline of 1.7 per cent.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
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