960405

Mumbai shares end

up on selective buying

MUMBAI: Mumbai Stock Exchange (MSE) blue-chip shares reversed a weak start to rally strongly at close on Friday boosted by selective foreign funds buying and hectic short covering, brokers said.

The 30-share MSE index firmed 27.49 points, or 0.81 percent, to a provisional close of 3,437.77 after hitting 3,402.97.

The 500-stock CRISIL rose 6.26 points to a provisional 718.49.

Brokers said the market attracted heavy foreign institutional demand in blue-chip stocks like IPCL, Oriental Bank and Lakme.

Traders said there was large oversold positions and some shares could attract backwardation when carry-forward charges are transacted on Saturday.

Backwardation reflects oversold positions and is a charge that sellers have to pay buyers for carrying forward the business.

Normally, the charge is paid by buyers.

Cement share ACC, pushed by short covering, rose 125 rupees to a provisional 4,000 with over 37,000 shares traded.

Bank share SBI firmed 6.5 rupees to a provisional 258.25 in volume of about 765,000 shares and IPCL rose five to a provisional 168 with 275,000 shares traded.

BHEL, fancied by foreign funds after the electricals giant's net profit rose 130 percent to 3.21 billion rupees in 1995/96 (April/March), jumped 11.25 rupees to a provisional 152.50 with over 50,000 shares traded.

Cadbury which announced a three-for-five bonus issue last week rose 12.5 rupees to a provisional 400. HDFC firmed 65 rupees to provisional 3,270 in trading volume of 49,430 shares.-Reuter