Political turmoil fails to affect markets

MUMBAI, July 26: Notwithstanding political uncertainties, lack of institutional participation and a greater degree of volatility, the BSE-3...

MUMBAI, July 26: Notwithstanding political uncertainties, lack of institutional participation and a greater degree of volatility, the BSE-30 sensitive index closed the week on a positive note at 4,189.81, recording a net gain of 64 points, against its previous week’s close of 4,125.81 registered on July 18.

"Selective buying interest at the blue chip counters despite fluid political scenario kept the index above the 4,150 levels," said a research analyst at an FII brokerage firm. "The rally was broad based, with scores of cash group stocks also touching new highs during the week," said Sandeep Shah of Kotak Securities.

The last day of the trading settlement saw hectic activities in select non-specified stocks which touched new 52-week high: Aptech (Rs 487), Essel Packaging (Rs 173.50), ICI India (Rs 237), India Shaving (Rs 625) and Kodak India (Rs 575).

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Another prominent feature of the week was the increasing volumes in the non-specified section. The first day of the settlement on Monday saw the figures in the range of Rs 38 crore. However, it appreciated by over 50 per cent to touch a high of Rs 60 crore.

Further, buying interest by domestic mutual funds at the counters of local stocks like Reliance, ACC, Tisco, SBI, Tata Chem saw the index cross the pyschological barrier of 4,250 to touch the intra-week high of 4,294.95 on Thursday. Besides attributing the gains to the fresh series of buying by the local punters, market analysts also highlighted the demand and supply factors.

"Also liquidity at MNC and Fera counters is considerably low," said a research analyst. "Even small buying interest provides enough scope for the stock prices to shoot up," he explained. The week ended July 25, saw Ponds India gain by Rs 247.50 to close at Rs 1,899.75 against its previous week’s close of Rs 1,652.25. This steady price rise has been attributed to the speculation built up on the ratio to be declared with the merger of Ponds and Hindustan Lever.

Hindustan Lever also spurted by Rs 55.75 to close at Rs 1,379.75. Castrol continued to be in the limelight, with even a local speculator paying a huge margin of over Rs 1 crore to take a huge position at this counter, with the net effect that the stock touched a high of Rs 667. Parke Davis recorded a net gain of Rs 18 to close at Rs 206.50.