Zee Tele, Reliance lead recovery

MUMBAI, SEPT. 20. Led by Zee Telefilms, majority of index-based shares bounced back into contention, aiding the Sensex to recover by 61 points today after a meltdown in the last five sessions on the Bombay Stock Exchange on revival of buying support from speculators and selective purchases by foreign funds.

The benchmark had fallen by over 499 points since last Wednesday amidst growing concern over rising oil pool deficit and negative FII activity coupled with downslide on Nasdaq.

After an early setback that brought the Sensex down to the day's low of 4211.87, hectic interested buying in Zee Telefilms and Reliance prompted a smart rally after midsession, partly bolstered by news that technology stocks rebounded on the New York market aiding the Nasdaq to recover by over 139 points yesterday.

The price rally was so strong that speculators who seemed to be in no mood in making commitments following fears of hefty petroproduct price hike, were induced to cover their short positions in key counters that had been in an oversold position.

The Sensex later recovered from its lows to close at around the opening level of 4325.25 against yesterday's close of 4264.34, netting a rise of 60.91 points or 1.43 per cent.

Meanwhile, crude oil prices fell slightly from post-Gulf War highs. In New York, the price of light sweet crude for October delivery declined 37 cents to $36.51 a barrel, down slightly from Monday's 10-year high.

- PTI

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Section  : Business
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