Sensex zooms 126 points on FII buying

MUMBAI, APRIL 18. The unabated buying spree by foreign institutional investors in new economy stocks jacked up the Sensex by a whopping 126 points on the Bombay Stock Exchange today.

Riding piggyback on the strong rally, the BSE sensitive index gradually moved upwards to close sharply at 3438.75 as against yesterday's close of 3312.29, showing a net rise of 126.46 points or 3.82 per cent. The BSE-100 index spurted by 76 points to 1636.29 compared with the previous close of 1560.29. The intensity of sustained purchases by FIIs was so high that the index heavyweights Infosys Technologies, Satyam Computer Services, Zee Telefilms and NIIT remained stuck in the 16 per cent upper circuit for a major part of the session.

Besides, other IT stocks such as Hughes Software, HCL Tech, Himachal Futuristic, Global Telesystems, Digital Equipment, SSI, Polaris Software, Aptech, DSQ Software, Mastek, Pentamedia Graphics, Rolta India and Silverline were also locked in the upper price band.

FIIs have been consistent net buyers since the beginning of the current month and made net investments of about Rs. 1,020 crores in the first fortnight till April 16.

Among the domestic players, Life Insurance Corporation seemed to have picked up sizable chunk of shares of old economy stocks, market sources said and added that operators and speculators were still unwilling to make fresh commitments in the light of curbs imposed by the market regulator.Meanwhile, the Nasdaq composite index improved by 13.47 points last night as small-capitalisation stocks moved higher on wall street.

Corporation bank was in keen demand hitting the 16 per cent upper price band on news that LIC has bought 12 per cent stake in it. Adani Exports and Aurobindo Pharma too were stuck in the upper circuit.

In the specified group, 164 counters registered sharp gains while 12 others including index scrips such as Castrol, HLL, Hindalco and Nestle showed marginal losses.

BSE board terminates official's services

The governing board of the Bombay Stock Exchange has tentatively recommended termination of service of its finance director, Mr. A. A. Tirodkar, for `loss of confidence' following allegations of his involvement in leaking market sensitive information.

The board has recommended termination of service subject to personal hearing of Mr. Tirodkar's submissions to the governing board at its next meeting on May 3, BSE said in a release after the meeting here today.

A three-member committee of BSE was set up to probe Mr. Tirodkar's alleged role into leaking market sensitive information to four brokers of the bull cartel.

- PTI

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