BUSINESS

Late recovery on Lyons Range

KOLKATA, DEC. 30. The Calcutta Stock Exchange witnessed yet another bearish period last week with share prices ruling depressed for most part as there had been no let up to the selling pressure that was in evidence in the previous week because of the prevailing uncertainties flowing from the ongoing border skirmishes with Pakistan continuously shelling across the border in the Kashmir sector. Massive troop movements towards the border by Pakistan and shifting of their missile position also to the border coupled with frequent reports of exchange of fire created nervousness among operators who were apprehensive of a possible escalation on the situation.

As a result, sellers dominated the market arena sending share prices reeling down over a broad front. But even in the face of such formidable situation, there was some late buying credited partly to foreign institutional investors at lower rates which aided the technology group to surge and close with gains onbalance. Most other share wound up the week in the minus territory because of the early pressure and subsequent lack of support.

Much of the impetus for the upward rise in technology counters came from the recovery in Infosys and other frontline scrips under the influence of purchase of fair parcels on behalf of FIIs. The CSE's 40-shrae index finished the week at 1650.11 points compared to the previous week's 1673.79 points after sinking earlier to a low of 1636.94 points. The recovery was helped by the bounce back in the technology shares which invoked support on two days of this 4-day week, Tuesday being a holiday for Christmas.

On the first day of the week, prices staged a smart recovery after initial declines as late buying developed in the market with operators going in for hectic support induced partly by interest evinced by financial institutions. Bulls are reported to have absorbed fair lot of host of software counters on the back of good purchase by local funds which in turn attracted investors to effect new commitments. Even so, the volume of business did not show any major uptrend, operators said.

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