960408

Bombay shares end higher,

pivotals lead the climb

BOMBAY: Position-building ahead of an expected resumption of purchases by foreign institutional investors (FIIs) boosted share prices on the Bombay Stock Exchange (BSE) on Monday, dealers said.

The BSE 30 index closed at a provisional 3,472.83 points, up 28.97 compared to the previous close, dealers said.

"The prices were pushed up on anticipation of expected FII enquiries", a dealer said. Monday being the first day of the new settlement also helped the rise, he said.

Many FIIs were inactive on Monday because of Easter holidays abroad, said another dealer.

"People expected a sharp rally based on Friday's closing index," said a dealer. This did not happen as FII buying was stagnant on Monday, she said.

But she said the sizeable volume of transactions on Monday was an indication of things to come.

If FIIs resume their buying, the index could rise by 250 to 300 points before the elections scheduled to begin on April 27, a dealer said.

State-run Indian Petrochemicals Corporation Ltd kicked off the results season by announcing a five percent rise in net profit for 1995/96 (April/March) at 5.9 billion rupees.

Indian Petrochemicals Corporation Ltd shares closed two rupees higher at 170 rupees.

Shares of auto maker Bajaj Auto Ltd rose 14 rupees to close at 840 after the firm announced improved vehicle sales for 1995/96 (April/March).

A technical analyst at a leading Indian brokerage said the next critical range for the BSE index is from 3,600 to 3,650.

"Once it clears the 3600 barrier we will see some fireworks but it's difficult to say whether this will happen before the polls or after. It depends on the strength of the move this week", he said.-Reuter