Sensex vaults 380 pts, but market remains weak

The barometer index fluctuated a good 466 points in the day’s trading session, amidst a high degree of volatility. The S&P CNX Nifty vaulted 132 points (4.57% ) to 3,097.65.

‘‘Only some leading topline shares rose, pulling up the index,’’ said a dealer. However, the BSE mid-cap index lost 0.77%, while the BSE small-cap index plunged 2.54%. A host of stocks, especially from these folds were severely thrashed during the recent market meltdown.

After losing 715 points in the last two sessions, the BSE Sensex broke free of the inert sentiment in opening trade as buying resumed. Also, the recovery in global markets and easing oil prices helped the recovery in the opening session.

The Sensex has tumbled close to 21% from its all-time high of 12,671.11 points, attained on May 11, 2006. ‘‘After three consecutive sessions of losses the market bounced back sharply on the last day of the current trading week as battered heavyweights and sectoral stocks found substantial buying support,’’ said Rahul Rege of Sharekhan.

But the market, which has dropped 17.5 per cent since hitting an all-time high on May 11, could come under renewed pressure next week with the government expected to raise retail fuel prices, triggering inflation worries and higher interest rates, analysts said.

Intriguing rise in Unitech shares: Why is real estate and construction firm Unitech shooting up on bourses? Unitech’s share price has jumped more than 30 times from its 52-week low of Rs 428 on June 21, 2005. Even as the Sensex underwent a 20% correction in May, the Unitech share shot up by a whopping 111% (Rs 7,046) to Rs 13, 393.85 in the last one month.