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Sentiments improve as Reliance leads

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CIOL Bureau
New Update

MUMBAI: Shares finished higher on Wednesday led by old-economy stocks such as

petrochemicals major Reliance Industries Ltd. as sentiment improved on slackened

selling by foreign funds, brokers said. Traders said the absence of alarming

developments so far in the stand-off between the United States and Afghanistan

also encouraged investors to hunt for bargains among battered bluechips.

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"It is a confused market," said a head of research at a domestic

brokerage. "We are watching the situation in Afghanistan, and until there

is a real danger of war, investors could cautiously invest and earn good returns

in 12 months from now." Reliance Industries rebounded from its 18-month low

hit on Tuesday. The stock, which accounts for 12.23 per cent of the Bombay

index, rose almost 10 per cent to Rs 226.80.

The benchmark 30-share Bombay Stock Exchange index closed up 1.91 per cent at

2,667.34 points, off its day's high of 2,682.59. At Wednesday's close, the

bellwether index has lost 32.85 per cent since the start of the year. The market

breadth was slightly positive as gainers led losers 480 to 466. The traded

volume was 61.7 million shares, lower than 63.4 million on Tuesday but above

Monday's 51.06 million. The broader 50-share National Stock Exchange index

closed up 1.48 per cent at 874.15 points (provisional).

Technology stocks staged a late recovery on expectations of a firm start at

Wall Street after Nasdaq futures rose while trading in Europe. Infosys

Technologies rose 3.81 per cent, Satyam Computer climbed 3.22 per cent, while

Wipro Ltd. jumped more than 13 per cent. Foreign funds have been a key factor

driving domestic sentiment in recent days. Data from the Securities and Exchange

Board of India showed that after the September 11 attacks, offshore funds have

been net sellers of Indian shares in seven of the 10 trading days so far.

Latest data showed they have been net sellers of Indian shares worth $74.1

million so far this month. And with just a few days to go in September, analysts

expect offshore funds will close this month as net sellers for the first time in

2001.

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