The Hindu Business Line : FII buying pushes Sensex up 292 points

A pair of fine corporate results and renewed buying by foreign funds authored a strong stock market recovery on Wednesday, after three days of decline.

The benchmark BSE-30 Sensex rose 291.75 points (2.50 per cent) to 11,938.53, wiping out Tuesday's losses. NSE's S&P CNX Nifty index gained 93.1 points (2.69 per cent) to 3,555.75.

Index heavyweight ONGC added its weight to the rally, gaining Rs 63.60 (4.81 per cent) to reach Rs 1,386.50, on the back of reports that IOC was selling its stake in the exploration company. Reliance Industries Ltd, which fell over the last two sessions, gained Rs 25.10 (2.63 per cent) to touch Rs 977.85.

Maruti gains

Among the Sensex companies, Maruti was the biggest gainer. The auto-major's share shot up Rs 55.95 (6.45 per cent) to Rs 923.45, courtesy good results. Cipla, which also announced a healthy result, flared up by Rs 14.85 (six per cent) to Rs 262.55.

All indices ended higher, reflecting all-round buying. The market breadth was also overwhelmingly positive with about 62 per cent of stocks gaining at close.

"The correction (of the last two days) was a bit overdone. Good results by Cipla, Maruti and Siemens also helped market sentiment," said Mr Amish Choksi, Vice-President (Institutional Equities), Edelweiss Securities.

Foreign flows

FIIs, which had been selling for six out of the last 11 days, seemed to have entered the market in a big way on Wednesday, dealers said. However, provisional data from the NSE showed that they were net sellers to the tune of Rs 246.05 crore. On Tuesday too, the provisional NSE figures indicated FIIs as net sellers of over Rs 550 crore. However, SEBI data, which came a day later, had shown them to be net buyers of Rs 194.80 crore on Tuesday.

"Foreign flows from non-traditional sources such as Korea, West Asia and the Scandinavian countries are waiting to enter the Indian stock market. At lower levels, there will be strong buying interest from these sources," Mr Choksi said.

Mutual funds had been major buyers over the last couple of days, an analyst said. On Tuesday, they were net buyers of over Rs 217 crore. With this, mutual funds have become net buyers of about Rs 2,000 crore in April.

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