Business

Sensex up 147 points

MUMBAI: Flagging fortunes on the capital market were reversed on Tuesday, as hectic short covering by operators in the derivatives segment pushed the benchmark Sensex up by 147 points to over a four-month high of 12321.19.

Bank shares hogged the limelight following a State Bank of India statement that interest rates were softening. Banking sector also attracted heavy interest after RBI Deputy Governor, V. Leeladhar, said that the final guidelines on Basel-II implementation would be issued in a couple of weeks.

The Sensex closed sharply higher at 12321.19, up by 147.28 points or 1.21 per cent over Monday's close of 12173.91. The index touched the intra-day low of 12160.58 during the mid-session. On the National Stock Exchange, the S&P CNX Nifty surged 48.30 points or 1.37 per cent to 3571.75.

Activity was largely confined to frontline stocks in view of approaching end of derivatives contract.

Foreign institutional investors as well as retail investors were engaged in rolling over positions to October contract of the Futures & Options (F&O), brokers said. Operators began covering their short positions two days ahead of expiry of futures contract on September 28.

Foreign institutional investors, who have been heavy sellers in derivatives for the last couple of days, too were seen covering short positions in the futures. Reflecting sharp rally in banking counters, the sectoral BSE-Bankex flared up by 110.60 points or 1.94 per cent to 5797.72. Of the total 2,593 traded shares, 1,240 counters scored handsome gains while 1,243 others recorded losses. — PTI

© Copyright 2000 - 2009 The Hindu