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Hectic buying pushes Sensex 100 points up on Friday
Mumbai, Feb 27: Indian stocks surged 1.80 per cent on Friday as investors turned aggressive buyers in software blue chips amid reports of increased response to ongoing public share offers, dealers said.
Mumbai, Feb 27: Indian stocks surged 1.80 per cent on Friday as investors turned aggressive buyers in software blue chips amid reports of increased response to ongoing public share offers, dealers said.
The BSE-30 share -- Sensex rose 100.39 points to close at 5,667.51.
Dealers said softwares were the flavour of the day as investors saw strong value in the sector, which has seen prices erode by 30 to 40 per cent in the past two months.
Other sectors to attract solid buying were cement and automobile.
"It could also be the Shourie effect that is propping up the market," said a dealer with a domestic brokerage.
Disinvestment Minister Aurn Shourie has cracked down heavily in the past two days on a number of merchant bankers, investment advisers and corporations for pressuring the prices of state-run stocks that are currently offering equity issues.
The dealer said certain people were pressuring the prices so the Government will offer a lower price band to investors bidding for these issues, especially institutions.
"To some extent it could be this factor, but also there has been genuine buying in softwares which have fallen sharply since December," said dealer at KJMC Capital Market Services, Vijay Tilakraj.
"But it is still difficult to predict any near term trend as the volatility will continue till we see end of the public offers."
The biggest share offer ever in India opens next month when oil giant Oil and Natural Gas Corp. (ONGC) issues its shares to public investors for raising over two billion dollars.
The other key issue from gas major Gas Authority of India (GAIL) opened on Friday and is expected to raise over Rs 20 billion ($442 million), while the offer from Indian Petrochemicals (IPCL) closes later on Friday.
Dealers said softwares were the flavour of the day as investors saw strong value in the sector, which has seen prices erode by 30 to 40 per cent in the past two months.
Other sectors to attract solid buying were cement and automobile.
"It could also be the Shourie effect that is propping up the market," said a dealer with a domestic brokerage.
Disinvestment Minister Aurn Shourie has cracked down heavily in the past two days on a number of merchant bankers, investment advisers and corporations for pressuring the prices of state-run stocks that are currently offering equity issues.
The dealer said certain people were pressuring the prices so the Government will offer a lower price band to investors bidding for these issues, especially institutions.
"To some extent it could be this factor, but also there has been genuine buying in softwares which have fallen sharply since December," said dealer at KJMC Capital Market Services, Vijay Tilakraj.
"But it is still difficult to predict any near term trend as the volatility will continue till we see end of the public offers."
The biggest share offer ever in India opens next month when oil giant Oil and Natural Gas Corp. (ONGC) issues its shares to public investors for raising over two billion dollars.
The other key issue from gas major Gas Authority of India (GAIL) opened on Friday and is expected to raise over Rs 20 billion ($442 million), while the offer from Indian Petrochemicals (IPCL) closes later on Friday.
According to reports, the IPCL issue has been oversubscribed, while the responses to other three issues of IBP Co, CMC Ltd and Dredging Corp is picking up after the Shourie's crackdown.
Leading the rally Friday was software leader Infosys closing up Rs 214.75 at Rs 5,071.90, Wipro was up Rs 34.90 at Rs 1,457.50, Satyam was up Rs 20.10 at Rs 309.60, cement counter ACC was up Rs 13.10 at Rs 259.80, automobile majors Bajaj Auto was up Rs 40.35 at Rs 906.60, and Tata Motors was up Rs 13.45 at Rs 570.
ONGC closed up Rs 16.60 at Rs 718.10, while GAIL was up Rs 5.20 at Rs 201.85.
Bureau Report