Mumbai, May 13: Notwithstanding the initial shocks, the market went on a roller-coaster ride before ending up by 41 points on hectic purchases following indication that a stable government will be formed at the Centre. Starting off with a wide downside gap of 124 points, the biggest in the last four years, the BSE benchmark 30-share index witnessed an intra-day swing of 356.31 points and ended at 5399.47 as against yesterday's close of 5358.35, a net rise of 41.12 points or 0.77 per cent. Initially, the sensex crashed to 22-week low at 5131.03 on fears of a hung parliament but later bounced back with a vengeance to the day's high of 5487.34 as poll trends indicated that the Congress-led secular force will be able to form a stable government at the Centre.
Foreign institutional investors as also Indian financial institutions led by the Unit Trust of India and Life Insurance Corporation were believed to have made hectic purchases in a number of key counters. The market also met with resistance at higher levels as punters booked profits as a precaution anticipating changes in economic policy despite indications that economic reforms will be continued by the new government.
Domestic institutions too were seen booking profits at the higher price levels after midsession.
FIIs which made net sales of Rs 998 crore on Monday and Tuesday following exit polls prediction of a hung parliament and the TDP's rout in AP assembly elections, covered short positions after it became clear that there will be a stable government at the Centre. Bureau Report