THE key stock market indices opened the week with a gain of over one percentage point, but went on to record a decline of over two percentage points during the next two sessions on Tuesday and Wednesday.
Just when Wednesday's session was looking like it was going to follow the declining trend, a strong surge in buying support that emerged during the second half of the trading session helped the indices post a gain of over 1.7 per cent. The rise in investment support from institutional buyers kicked in a couple of hours into the session and it not only helped the indices wipe out the losses from the initial bout of selling pressure, but also enabled them to scale back nearly to Monday's closing levels.
Though the BSE's Sensitive Index (Sensex) closed the previous two sessions with losses, the index had crossed the historic level of 9,000 points on both those sessions and even posted an all-time high of 9,034 points on Wednesday. However, despite the strong rise in the index on Thursday, the intra-day high did not cross the magical 9,000 points mark.
At the BSE, the Sensex opened higher than its previous close at 8,814 points, but quickly lost steam and slid to an intra-day low of 8,770 points. But strong institutional buying support starting from the third hour of commencement of trading helped the Sensex rebound and eventually post a sizeable 156-point gain for the day. Thursday's session witnessed a jump in prices across most sectors and most segments including blue chips, mid-caps and small caps.
However, the sudden surge in prices was most visible amongst Sensex stocks. It was evident from the fact that there were a total of 29 stocks that posted gains compared to a lone loser from among the Sensex 30. The total value of traded stocks was also a high Rs 1,058 crore.
The story at the National Stock Exchange (NSE) was not much different with the 50-share S&P CNX Nifty index posting a 1.8 per cent jump at 2,699 points. But, unlike the BSE Sensex's inability to cross the all-important 9,000 points mark on Thursday, the Nifty managed to cross the 2,700-point mark even on Thursday, with an intraday high of 2,705 points.
Amongst the biggest gainers from amongst the Sensex stocks were ACC with a jump of 4.9 per cent, Reliance Energy gained 5.6 per cent, L&T up 4.4 per cent, Cipla was up 3.9 per cent and among the other stocks which gained about two to three per cent included Infosys Technologies, Ranbaxy Laboratories, Tata Motors, Gujarat Ambuja Cements, BHEL, Satyam Computers, Wipro, SBI, Hindalco and Grasim Industries. The only loser from the Sensex's 30 stocks was Hero Honda, which slipped by 1.2 per cent.
At the BSE, the other broader and sectoral were also in the positive on Thursday, with the key gainers being the BSE 100, the BSE 500, BSE PSU, BSE Bankex, BSE Auto, BSE Teck, BSE midcap and the BSE smallcap indices. The BSE Teck Index was one of the biggest gainers with a 2.34 per cent rise compared to its previous close.
At the NSE, the only two stocks in the Nifty, which were in negative territory, were Hero Honda and PNB. The biggest gainers from amongst the Nifty stocks were Zee Telefilms, Nalco, Mahindra & Mahindra, Sun Pharma, VSNL, GlaxoSmithKline Pharmaceuticals, Shipping Corporation, MTNL, GAIL, HLL, TCS and Dr Reddy's Laboratories.