Financial Daily from THE HINDU group of publications
Saturday, Sep 20, 2003
Financial Daily from THE HINDU group of publications Saturday, Sep 20, 2003 |
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Markets
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Stock Markets Markets bounce back Our Bureau
Mumbai , Sept. 19 ON Friday, for the second time this week, a court ruling decided the course of the stock markets. Choppy markets steadied this afternoon when a Special Court in Rae Bareilly hearing the Babri Masjid demolition case declined to frame charges against the Deputy Prime Minister, Mr L.K. Advani. The court, however, directed that charges be framed against seven top leaders of the ruling party and associates, including the HRD Minister, Mr Murli Manohar Joshi, for allegedly making inflammatory speeches. Mr Joshi has since tendered his resignation from the Cabinet. Extreme volatility marked early trade today with the BSE's benchmark 30-share index swinging wildly. Though it opened firm, the Sensex slipped to a low of 4,097 before rallying to 4,225 and finally settling to close at 4,217. The Nifty closed at 1322.15, up 1.5 per cent. According to dealers, the markets saw the exoneration of Mr Advani as a positive development. After the wild swings in early trade the indices steadied by afternoon when senior BJP leaders, including the party President, Mr Venkiah Naidu, issued statements supporting the accused. Even though news of the court ruling hit the market only by 3 p.m. speculators had already begun taking position anticipating the development, dealers said. In the last half hour of trading, concerted buying in heavyweights ITC, Reliance, HLL, SBI, and Infosys lifted the indices. By the end of trading, the Sensex had gained more than 80 points from its previous close. Early this week, a Supreme Court ruling that the Government cannot sell its ownership in public sector oil refining and marketing companies HPCL and BPCL without Parliament approval had depressed market sentiment. On Monday, the day before the verdict came, jittery investors had sold heavily dragging the Sensex down by 112 points. HPCL lost almost 8 per cent that day. Even though the market recovered on the day of the verdict, HPCL remained under pressure for a couple of days more.
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