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Indo-Pak peace talk prospect lifts sentiment; Sensex up 31 points to 4066.82

The possibility of ending Kargil operation following India's positive response to Pakistan's initiative for talks has boosted the market sentiment at the Bombay Stock Exchange, with pivotals staging a smart recovery on good buying support from foreign institutional investors and local operators.

The 30-share BSE Sensex opened on a weak note at 4025.07, marginally lower from the previous close of 4035.32 points, and went down further to 3987.11 points around 1015 hrs.

However, the Sensex rose sharply to touch a day's high of 4075.88 points, immediately after the report reached the market that India conveyed to Pakistan that their foreign minister, Sartaj Aziz, could come to New Delhi on June 12 for talks on Kargil issue.

The report really lifted the market sentiment up, said a dealer.

The Sensex finally ended at 4066.82 points, showing a net gain of 31.50 points over the previous close.

Share prices at the National Stock Exchange also rose smartly despite the last day of the weekly settlement there.

The foreign institutional investors have made net purchases worth Rs 550 million yesterday on the Indian bourses, market sources said and added that the FII purchases also encouraged operators today.

The broad-based BSE-100 index gained by 16.18 points to 1760.43 points from the previous close of 1744.25 points.

The FIIs have bought considerable number of shares of L&T and ACC.

Institutionalised buying was reported in the counters led by Cipla, Hindalco, Chambal Fertiliser, L&T, Mastek, NIIT, Pentafour Software, Reliance Petroleum, Reliance Industries and Wartsila.

The BSE-200 and Dollex indices at the BSE closed higher by 3.60 and 1.40 points to 400.64 and 155.09 points from the previous close of 397.04 and 153.69 points respectively.

UNI

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