The Hindu Business Line : Sensex gains 54 points

After being in the red for three consecutive sessions, in the wake of the controversy over the SEBI’s proposal on P-Notes, the BSE-Benchmark Sensex ended positive on Monday.

The Sensex gained 54 points and closed at 17613.99. By Friday, when the index closed at 17559.98, it had lost almost 1,500 points from 19,174.45.

The FIIs were net sellers on Monday, but there was some amount of buying from the local funds. However, smaller FIIs seem to be getting out of the market, thus affecting the liquidity, said a dealer with the Emkay Institutional Dealing Desk.

FII net sellers

FIIs were net sellers to the tune of Rs 1,290 crore, according to the provisional data available on the NSE.

As per the SEBI, FIIs have been net sellers to the tune of Rs 3,215.50 crore, these are the trades conducted on and up to October 19.

Market men believe that the SEBI norm is going to hit hedge funds, and in short-term it will have serious liquidity impacts.

“The FIIs have calmed down a bit after today’s meeting, although all their concerns might not have been addressed yet. But it seems as though most of the FIIs are willing to register themselves,” said Mr Sanjay Someshwar, sub-broker, Ventura Securities.

Fresh funds

“There are fresh FII applications for registration, which could bring in fresh funds to the market. This is seen as a positive element by the market participants,” said a technical analyst with a broking firm.

“Till Tuesday, rollovers were below average because of the impending SEBI meeting, but we will have to see the rollover positions happening from Tuesday onwards as they will be indicative of the future trends in the market,” said Mr Aalap Shah, Derivative Analyst, Dolat Capital Market Pvt Ltd.

Among the sectoral indices, BSE-BankEX was up 2.17 per cent, consumer durables and capital goods were also up 0.52 per cent and 0.90 per cent, respectively.