MUMBAI, JAN 30: The recovery in share prices continued for the second successive day on the National Stock Exchange on Friday following purchase orders from institutions. The Nifty index gained 22.10 points to close at 963.45 points. The NSE recorded a turnover of Rs 1,058.67 crore. The Bombay Stock Exchange remained closed for Ramzan Id.Brokers attributed the rise in share prices to the increase in the GDR premiums by about 2-3 per cent which led to a buying spree in the underlying shares."Action was kicked off at the HLL counter," commented a dealer at an FII brokerage firm. "Since supply has dried up, the market is bound to rally by another 150-200 points, before a final correction takes place at the 3,050 level," he added.Rumors that Oppenheimer and HSBC Batlivala & Karani placed buy orders at the counters of MTNL, ITC, Castrol and HDFC saw local speculators rushing to take fresh positions at these counters, which reflected on the stock prices.MTNL closed at Rs 225.20, up Rs 10.20 with 14.54lakh shares exchanging hands. Local punters were reportedly placing huge buy orders at the counter of HLL which saw the stock register a sharp rise in its volume by over 150 per cent to touch a high of 4.75 lakh shares. The stock price appreciated by Rs 61.50 to close at Rs 1,352.HDFC, which registered a gain of Rs 100 to close at Rs 2,810, was rumoured to have appreciated on FII buying. However, only 5,540 shares changed hands which denotes trades conducted as per the market lot and not in the form of a negotiated or bulk deal.According to market sources, UTI and certain offshore funds were reportedly placing enquiries at the counters of SmithKline Consumer, ACC, Castrol, HLL and Glaxo. "The institutional funds pouring into the markets today are not in the form of long-term investments hence, bull liquidation at higher levels is inevitable,'' commented a fund manager.Among the pivotals, SBI registered a smart recovery of Rs 7.85 to close at Rs 245, Reliance closed at Rs 154.25, recording a gain ofRs 4.40 with a huge volume of 59.5 lakh shares, ITC inched up by Rs 6.50 to close at Rs 560. Selling pressure at certain oil and PSU counters by institutional operators reflected on the stock prices.
