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Weekly Review: Jubilation at BSE, NSE

A jubilant atmosphere prevailed at both the Bombay Stock Exchange and the National Stock Exchange during the week ended on December 19, following renewed buying support from foreign institutional investors and continued investment made by the domestic institutions.

During the midweek, the Indian currency touched an all-time low of Rs 39.93 after the Reserve Bank of India Governor Bimal Jalan's declared that the rupee-dollar rate was ''reasonable,'' which kept FIIs away from the market.

Later,the rupee recovered which helped to improve the sentiment of FIIs and purchased sizeable amount of index-based shares. The FIIs investment in the Indian capital market dipped to US $8.96 billion during the first fortnight from $9.13 billion of last month.

Mirroring the uptrend, the BSE Sensitive index (30 scrips) crossed two psychological barrier marks of 3400 and 3500 and closed at 3540.91 points showing a net gain of 211.64 points as compared to last week's close of 3329.27 points.

The BSE National index (100 scrips) finished also crossed 1500 mark and settled down at 1536.14 points over the previous week's close of 1450.87 points while gaining 85.27 points. The BSE-200 and Dollex indices improved by 17.34 and 09.10 points to 342.29 and 145.27 points as compared to last week's close of 324.95 and 136.17 points respectively. The total turnover on BSE declined sharply by Rs 10.4 billion to Rs 36.2 billion as against previous week's close of Rs 46.6 billion.

The top domestic financial institution, JM Financial and Investment Company and Morgan Stanley combined their investment banking and institutional equity sales and business in the country.

Ninety per cent of Unit Trust of India scheme and several other mutual funds have underperformed in the stock indices. The BSE authorities have suspended 352 scrips for three-day as a punitive measure for companies that have not disclosed their half-yearly financial results and annual audited results.

The Securities and Exchange Board of India stipulated a uniform intraday price band of 10 per cent for all scrips across the stock exchanges.

During the week, SEBI held a meeting with 20 stock exchanges, and asked them to give lists of companies and share transfer agents, who have highest number of complaints. SEBI also decided to take suitable action against those companies which have the largest number of complaints from investors regarding bad deliveries and transfer of shares.

SEBI also directed all the stock exchange that all transactions in dematerialised shares be settled on a rolling basis on the fifth day of the respective transactions.

The NSE-50 index closed at 1028.40 points showing a net gain of 62.25 points as against its last week's close of 965.15 points. The Dollar NSE-50 (Defty) index settled at 909.15 points over the previous week's close of 846.60 points gaining by 62.55 points.

The Midcap index finished at 1144.15 points increased by 40.55 points as compared to previous week's close of 1103.60 points. However, the total turnover on NSE suffered a major setback, it declined by Rs 20.2 billion to Rs 64.1 billion as compared to last week's total turnover of Rs 84.3 billion.

UNI