Our Bureau

Mumbai, Sept. 23

AFTER a morning of high volatility, stock markets ended trade on Friday on a flat note. The Sensex opened in the green at 8255.05, but swung sharply downwards and shed over 131 points to touch its intra-day low of 8121.81.

However, post-11:30 a.m., the index recovered and despite some sharp movements, closed with a gain of 0.95 points at 8222.59. Overall, the index dipped into the red four times during today's trading session.

The Nifty graph was also characterised by sharp upward and downward spikes. The 50-stock benchmark index closed trade at 2477.75, up by 1.25 points from Thursday's close. Market participants were expecting a day of volatile trade on Friday. The recovery in the share prices was attributed to the roll-over for October in the futures and options segment.

Brokers also say that although the mood is one of caution, some investors are finding value buys at lower levels. Staunch denials about the Prime Minister's Office involvement in the investigations into stock movements helped restore some confidence in the market. Nonetheless , with the loss of over 265 points on Thursday, the tone for corrections has been set, however unnaturally, said a broker.

Expectations are that most investors would prefer to book profits over the next few days. "There are two kinds of investors in the market now, those who would book profits and drive prices down and those who see value at these levels and use them as opportunities to buy," said a fund manager.

Mid-cap counters, which were getting thrashed all week, saw some respite today. The BSE Mid-Cap Index closed with a gain of 0.94 per cent at 4028.55.

At NSE, the CNX Nifty also witnessed a smart rally, gaining 1.13 per cent to close at 3661.70. Analysts say that institutional interest in sound mid-cap companies led to the recovery in these indices.

The FIIs were net buyers to the tune of Rs 514.4 crore on Thursday. Mutual funds, however, have been cautious buyers this week, according to data released by SEBI.

(This article was published in the Business Line print edition dated September 24, 2005)
XThese are links to The Hindu Business Line suggested by Outbrain, which may or may not be relevant to the other content on this page. You can read Outbrain's privacy and cookie policy here.