Saturday, October 22, 2005

Sensex gains 134 pts at close

India's key share market index rose over one percent Friday, reversing its three-day losing streak, as investors cheered the government's decision to liberalise foreign investments norms in the telecom sector.

Most of the telecom companies attracted a significant number of big deals. Tata Tele was on the top with 283 block deals, Bharti Tele 12 deals, MTNL 22 deals, VSNL 11 deals and ITI Ltd 3 deals.

The stock market barometer 30-share Bombay Stock Exchange sensitive index or Sensex closed at 8,068.95, representing a gain of 133.83 points or 1.69 percent over its previous session's close.

The buying sentiment remained strong all through the trading session as institutional investors rushed to pick up heavyweight stocks of new as well as old economy companies.

The sell-off on the bourses in the last few sessions had been triggered by selling by foreign institutional investors following a rise in the US interest rates.

Overseas funds have turned into net sellers in the current month by withdrawing over $300 million so far. Foreign institutional investors sold off $91 million worth of equities on a single day Oct 14.

With Yesterday's relief rally, general investors expect the market to stabilise at current level and even post further gains, as economic fundamentals are strong amid robust second quarter corporate earnings.

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