Stocks recover on renewed buying

MUMBAI, NOV. 6. Stocks recovered overnight losses on fresh buying pushing the Sensex up by about 32 points at the close on the Bombay Stock Exchange today. The renewed buying was prompted by a sharp upsurge on Wall Street on Monday and anticipation of another rate cut by the Federal Reserve.

The denial by the Finance Minister Mr. Yashwant Sinha yesterday of any plans to tax all share transactions to mop up new revenues also provided a respite to the market that had yesterday reacted negatively on reports on imposition of such a tax, sources said.

The BSE benchmark 30-share index opened marginally up at 3038.02 and later rallied smartly to the intra-day high of 3087.59 before ending at 3068.89 against yesterday's close of 3037.01, a net rise of 31.88 points or 1.05 per cent. The BSE-100 index improved by 21.26 points to 1435.55 from the previous close of 1414.29.

The sharp rally in technology and other stocks on Wall Street that lifted the Dow Jones industrial average and the Nasdaq composite index by about 118 points and 48 points respectively, prompted foreign institutional investors to make fresh purchases, mainly in second-line IT stocks, sources added.

Though FIIs have slowed down activity, they have made net investments on the first two sessions of November and likely to increase their purchases in case of a Fed rate cut late this evening, which will be tenth in a row this year.Max India suffered a sharp setback on heavy selling following a warning from the company that there would not be any profits for the next few years.

In the specified group, 126 including 23 index-based counters finished with sharp to moderate gains while 44 other showed losses.

- PTI

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