Sensex recovers by 50 points

Brokers said the session commenced on a weak note but share prices recovered after the mid-session following fresh support extended by foreign funds and local institutions. The recovery was also on account of short covering. Now that the market had already overcome the negative impact of political developments, marketmen expect share prices to move upwards amidst expectations that the BJP-led government would survive the latest crisis.

The sentiment was also boosted on hints by finance secretary Vijay Kelkar about the rupee depreciation to spur exports and a further cut in interest rates in the forthcoming credit policy. Most of the operators were busy squaring up their positions in view of last day at the National Stock Exchange (NSE).

Power shares were in keen demand and most of them exhausted the daily upper limit on strong speculation that their earnings will go up sharply. In addition to this, reports that Tata Electric Companies and BSES had acquired 51 per cent stakes in some Orissa power companies further aided the sentiment.

Pentafour Software clocked the highest turnover of Rs 338.18 crore of the total volume of business of Rs 1823.87 crore. ITC recovered by Rs 65.25 at Rs 949,Pentafour by Rs 8.75 to Rs 1159.75, Satyam by Rs 18.50 to Rs 1582.75, Digital Equipment by Rs 30.75 to Rs 417.75 and Reliance by Rs 5.30 to Rs 127.10 on fresh support.