Mumbai, Oct 26: The BSE index today resumed high at 18,823.66 points gaining around 53 points from its last close of 18,770.89 points on sustained heavy speculative demand from FIIs and domestic fund opertors.
Brokers said, ''The market spurted in early trade on continued buying support for index pivotals following strong rollover of derivative positions from October 2007 to November 2007 on yesterday. BSE Sensex regained 19,000 level. The market saw a bout of volatility in early trade. Market breadth was strong on BSE.
Later, the current Sensex was up by 268.97 points to 19,042.72.
It had opened marginally higher at 18,823.66 and slipped to low of 18,629.53 so far during the day. Its high for the day so far was 19,047.12.
The Sensex had struck an all-time high of 19,198.66 struck on 18 October 2007.
The current broader based S&P CNX Nifty index of NSE is up by 89.95 points, or 1.60 pc, to 5,658, before it resumed low at 5564.25 points from it last close of 5568.95 points. It recorded a high at 5661.40 and a low at 5513.35 points in intra-day trade.
A leading broker stated that,'' The market shrugged off concerns arising from possible FII sales after market regulator Securities&Exchange Board of India (SEBI) put restrictions on issue of participatory notes (PN) after trading hours on yesterday and directed some exiting PN positions to be wound up within 18 months.
The market regulator has put in place a set of regulations to clamp down excessive inflows through participatory notes (PN). The regulator affirmed that sub-accounts would not be allowed to issue PNs and that FIIs will have to unwind PNs with derivatives as underlying in 18 months. SEBI further allowed both regulated and unregulated pension funds, endowments, university funds and charitable trusts to register as FIIs.
They further stated that,'' PNs are issued by FIIs registered in India to unregistered overseas investors. Registered FIIs buy Indian securities and issue the notes based on the underlying asset.
While announcing rules to curb issue of participatory notes (PNs) by FIIs, the market regulator Securities&Exchange Board of India SEBI has also made it clear that PNs can now be issued only to foreign entities which are 'regulated' in their respective jurisdiction and not to those that are merely 'registered' in the jurisdiction as was the norm earlier. This will mean that many hedge funds that are not regulated in their home country will find it difficult to invest in the Indian market, brokers informed.
World's sixth largest steel maker, Tata Steel struck 52-week high of Rs 1025 in early trade today. It was now up by 3.14 pc to Rs 1020 on 4.10 lakh shares. It was the top gainer from Sensex pack. Tata Steel will declare Q2 September 2007 results today.
Reliance Energy, the country's second largest power utility company by sales advanced 2.81 pc to Rs 1696.
India's largest private sector entity by market capitalisation and oil refiner Reliance Industries (RIL) rebounded sharply from day's low of Rs 2610 to hit a high of Rs 2693.95. It was now up by 2.40 pc at Rs 2691.20 on 2.10 lakh shares.
India's largest oil exploration company by market capitalisation Oil and Natural Gas Corporation(ONGC) rose by 1.79 pc to Rs 1133.90.
As per recent reports, its joint venture firm ONGC-Mittal Energy had acquired a 30 pc participating interest in an exploration block in the Caspian Sea, Turkmenistan.
Dr. Reddy's Laboratories, the nations third largest pharma company by market capitalisation, was under selling pressure for the second straight day. It was the top loser from Sensex pack. It slipped by 1.36 pc to Rs 606.25. It had reported a 4.5 pc fall in consolidated net profit to Rs 267 crore in Q2 September 2007 over Q2 September 2006.The results were announced after market hours on yesterday.
HDFC Bank was down by 0.20 pc to Rs 1538, and Hindustan Unilever by 0.39 pc to Rs 219.80, were the other losers from Sensex pack.
October 2007 futures contracts expired yesterday, October 25 2007.
Rollovers were healthy and in-line with the previous two months. As per market data, marketwide rollover of derivative positions from the October 2007 series to the November 2007 series was 84 pc, while the Nifty rollover was 71 pc.
Marketwide rollover of derivatives positions from September 2007 to October 2007 was 84 pc while that of August 2007 contracts to September 2007 contracts was 82.30 pc. Nifty rollover for September 2007 to October 2007 was 71 pc and that of August 2007 contracts to September 2007 was 70 pc.
Asian markets were trading higher today,as Hong Kong's Hang Seng was up by 1.37 pc at 30,263.81, Japan's Nikkei by 1.14 pc at 16,469.43, Taiwan's Taiwan Weighted by 0.79 pc at 9,643.44, Straits Times by 1.31 pc at 3,755.75 and South Korea's Seoul Composite by 1.92 pc at 2,014.64 edged higher.
US markets ended slightly lower yesterday, as investors were uneasy about the credit markets and record-high oil prices and took little solace from reports on new home sales and durable goods orders. The Dow Jones Industrial Average slipped by 3.33 points, or 0.02%, to 13,671.92. The Standard&Poor's 500 index lost by 1.48 points, or 0.10 pc, to 1,514.40, while the Nasdaq Composite Index lost by 23.90 points, or 0.86 pc, to 2,750.86, brokers added.