Late rally on Lyons Range

CALCUTTA, MAY 7. Yet another bear hug with repeated bouts of selling in the first half followed by a smart bounce back in share prices under the lead of software and pharma group was the highlight of trading on the Calcutta Stock Exchange last week.

The selling pressure was in evidence right from the start and assumed panic proportions in the wake of wild rumours that the authorities concerned were probing the activities of some of the major software companies in relation to the stock market operations.

This in turn created havoc in the market leading to an avalanche of nervous selling under the impact of which prices caved in to sink to new lows for several weeks dragging along the representative indices as well.

The pressure was built up more around the software group which suffered the worst and had its sympathetic impact elsewhere in the specified as well as cash counters forcing them downwards sharply.

At the end of the week, the situation looked somewhat promising as in some counters demand was outstripping supplies with the result that the concerned shares finished the week well above the closings of the previous week in enlarged volume.

The business volume was at a high level and the undertone at close was distinctly firm indicating that the recovery will persist as the market resumes trading on Monday.

With the smart recovery in shares in the specified list, the cash counter also looked up, though the pace here was somewhat tardy reflecting slower buying and restricted volume. Even so, the fact that the recovery has also percolated into this section is heart warming to investors who are looking forward to an increase in the value of their holdings in order to dispose of atleast a part of their stocks.

A senior operator commented that on the final day of the week buy orders in the market exceeded markedly those of sale indicating that the bourse has clearly come out of its bearish mood.