Date:21/04/2005 URL: http://www.thehindu.com/2005/04/21/stories/2005042105171800.htm

Business

Sensex zooms 108 points

Special Correspondent

MUMBAI: Stemming the free fall of indices in the last few days the stock markets on Wednesday recovered on bargain hunting, which lifted the market sentiment. However, information technology stocks are still badly hit, especially TCS which lost further ground, as selling continued following disappointing quarterly results. The benchmark Bombay Stock Exchange 30-share sensitive index gained 108.88 points, or 1.77 per cent at 6243.74 against the previous close of 6134.86.

The 50-share NSE S & P Nifty ended 20.30 points higher at 1929.70 against its previous close of 1909.40.

From its all time high of 6954.86 touched in intra-day trades on March 9, the Sensex has lost 711.12 points. "The positive market sentiment to my mind still continues.

"However, we are going through a reality check," said Ved Prakash Chaturvedi, Chief Executive Officer, Tata Asset Management Ltd.

This is healthy for the market and would lead to consolidation.Market participants are sceptical whether today's recovery is going to sustain or not.

In the short-term liquidity is key driver for market sentiment, while the fundamentals count in the long run.