BUSINESS

Stocks bounce back on hectic FII purchases

MUMBAI AUG. 26. The impact of Monday's twin bomb blasts in the metropolis was short-lived and stocks bounced back with a vengeance driven by hectic purchases by foreign funds, aiding the Sensex to end 148 points up in brisk activity on the Bombay Stock Exchange on Tuesday.

Investor buying was intensive even as political crisis in Uttar Pradesh deepened further with the Chief Minister, Mayawati, tendering resignation to Governor, Vishnu Kant Shastri, this afternoon.

Discounting the political development, speculators that had squared up in overnight stocks slide, went on building up heavy positions on the back of a sudden spurt in foreign institutional investors (FIIs) activity.

The BSE benchmark 30-share index opened strong at 4021.91 and gradually moved upwards to the intra-day high at 4160.02 before ending at 4152.29 against the previous close of 4004.63, netting a hefty rise 147.66 points or 3.69 per cent.

The broadbased BSE-100 index also spurted sharply by 90.02 points to 2159.55. Old economy stocks were the first to rebound with strong economic fundamentals coupled with sustained net investments by FIIs that have reached to a record high in the current year, brokers said.

Heavyweighted counters like Reliance, Grasim, HLL, Infosys, SBI, Tata Motor, Tisco, ITC, GACL and MTNL were the highest gainers in the specified list.

— PTI

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