Mumbai: The Bombay Stock Exchange benchmark
Sensex rose to 20-month high at 17,558.73 on the first trading
day of the New Year with auto and metal counters attracting
brisk buying amid firm European cues.
The New Year also saw exchanges switching over to new
trading schedule of opening at nearly an hour early at 9 am,
though brokers community had vehementally opposed it.
Vying with each other to grab more volumes, NSE last
month announced advancing trading timings, a move which was
matched by the BSE within minutes.
However, extended trading hours did nothing to boost the
volumes. The volumes in the cash segment fell to Rs 14,978.55
crore from the previous session's Rs 15,149.24 crore.
The F&O segment turnover was also less at Rs 42,559.47
crore compared to the December average of Rs 72,618.21 crore.
After opening weak, the 30-share index of the BSE moved
in a limited range before ending the day up 93.92 points or
0.54 per cent 17,558.73, a level seen last in April 2008.
The 50-issue Nifty of the National Stock Exchange also
improved by 31.15 points or 0.60 per cent to 5,232.20.
The auto index rallied as the companies posted strong
sales in December 2009.
Small-cap and mid-cap counters outperformed the Sensex,
reflecting good retail activities.
Brokers cry 'discomfort'
On the first day after the bourses
advanced market hours to 9 am, trading in the BSE and the NSE
were conducted normally even though brokers said extended
hours created discomfort for the traders.
"The trading was as normal as any other day. Volumes were
a tad higher. This is partly because of the extended trading
timing and partly because many traders returned to market
after holidays," a Bombay Stock Exchange official, who did not
want to be named, said.
However, brokers, who have been protesting against the
extension citing practical difficulties, said longer trading
hours created discomfort for them.
"Trading was not easy. We are seeking feedback from our
members and will decide the future course of action,"
Association of National Exchanges Members of India President
EMC Palaniappan said from Chennai.
Both BSE and NSE decided to advance the trading time to
9 am last month after back-to-back announcements, with a view
to align their trading hours with major Asian markets.
When contacted, both BSE and NSE officials said the
"trading went off normal as any other day".
"Trading commenced peacefully as every member broker
logged in at 9 am. However, the trading pattern during the
extended first-hour will be known only after one-week's time,"
a National Stock Exchange official said here.
A BSE official said the additional one hour partly
contributed to enhance volumes at BSE on the first day.
Brokers' bodies were protesting against the extension of
tarding hours saying that this would cause commuting problems,
increase costs of trading while equal returns are not
guaranteed.
Association of National Exchange members of India had
demanded a status quo in the trading time until adequate
infrastructure is in place.
PTI
First Published: Tuesday, January 05, 2010, 00:21