Second-line stocks attract retail investors

MUMBAI, MAY 25. It was yet another day of extremely low volatility on the Bombay Stock Exchange today with the benchmark 30-share index fluctuating in a small band of about 53 points before ending in the negative territory due to moderate losses in select heavyweights.

The low volatility seemed to have become the order of the day after the market regulator decided to ban carry forward trading in the rolling settlement being introduced with effect from July 2, besides several other adverse factors.

The market was much better considering a smart rally in several second-line stocks that have continuously been attracting attention of retail investors as well as foreign institutional investors (FIIs) in the current settlement, market sources said.

Though FIIs were reportedly good buyers in select IT counters like Satyam Computer Services, Silverline and a few others, their slowdown affected the sentiment to a large extent, sources added.

Heavyweights such as Hindustan Lever, SBI, RPL, Telco, Hindalco, MTNL, Gujarat Ambuja Cements, Hindustan Petroleum, BHEL and ACC, which suffered a moderate setback due to selling pressure.

The BSE sensitive index opened fractionally better at 3686.16 and later remained directionless moving in a limited range of 3700.66 and 3647.35 before closing at 3659.81 as against yesterday's close of 3683.20, netting a loss of 23.39 points.

- PTI

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Section  : Business
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