Date:02/03/2007 URL: http://www.thehindubusinessline.com/2007/03/02/stories/2007030207970100.htm

Back Markets bounce back on short covering

Our Bureau

Information Technology stocks rebound

Advertisement

Mumbai March 1 The stock markets, which suffered a heavy fall on Wednesday, the day the Union Budget was presented, bounced back on short covering and buying in the IT counters on Thursday. Markets also saw support from recovering global indices, which had fallen steeply on Wednesday. The BSE-30 Sensex gained 221.46 points or 1.71 per cent to close at 13,159.55 points after two sessions of downfall. The NSE S&P CNX Nifty ended 1.76 per cent higher at 3,811.20.

"Markets went up on short covering. Also, the IT sector stocks bounced back as markets had over-reacted to the Budget announcements yesterday. There was value buying in IT and bank counters," said Mr Bhavesh Vakharia, Head-Retail Dealing, Parag Parikh Financial Advisory Services Ltd.

Domestic Buying

The IT and TECk Sectors were the biggest gainers among the sectoral indices ending higher by 4.13 per cent and 3.36 per cent respectively. "Institutional support was witnessed on the domestic side as stocks can be purchased at cheaper value. Margin calls led to a dip in markets in the morning but good domestic buying helped them recover," said Mr Ravindra Kasliwala, Head-Equity, Inventure Growth and Securities Ltd. Foreign funds, however, continued to be net sellers at Rs 483.14 crore as per provisional figures on the NSE.

Top gainers were TCS, up 5.65 per cent at Rs 1,255.60, followed by Satyam Computers, up 5.47 per cent at Rs 435.05. Cement stocks continued to trade in the negative zone. Gujarat Ambuja Cements Ltd shares fell 3.62 per cent at Rs 111.75. The shares of ACC Ltd ended at Rs 876.55, down 2.61 per cent. Volumes were good on the BSE, with the total turnover at Rs 4,397.01 crore, dealers said.