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Samvat 2056 opens on a bullish note: Sensex surges past 4650

The Bombay Stock Exchange opened on a firm note on November 7, 1999 on the festive occasion of moorat trading.

Pivotals posted handsome gains at the BSE with the country's 125-year old premier bourse making a buoyant start for the Samvat 2056.

The 30-share Sensex opened at 4668.45 points, 70 points up from the Friday's close of 4598.45 points and firmed up further to touch the day's high of 4682.35 points, before closing at 4650.54 points, showing a net gain of 52.09 points as against the previous close.

Hopes of a new high in new year strong: Dina Mehta

''The market has already opened on a firm note for new Samvat and we hope that the new Samvat 2056 will be very good for the market and for the Sensex to touch a new high,'' said Dina Mehta, vice- president, BSE.

After a gap of a couple of years, the market saw a bullish trend during the moorat trading, a leading BSE broker said. All the pivotals were at the forefront of the rally, dealers said and added that Global Telesystems, Satyam Computers, Pentafour Software, Himachal Futuristic registered considerable gains on good buying support from institutional investors and local operators.

Volumes low as FIIs have a holiday

Business volume was at a very low ebb in absence of foreign institutional investors and for the fact that the trading today was only for 90 minutes.

The players had a token business during the short period and therefore the movement of Sensex, too, was in the restricted range, leading BSE brokers said.

Mirroring the uptrend, the broad-based BSE 100-National Index advanced smartly by 31.38 points to 2182.48 points as against the Friday's close of 2151.10 points and BSE-200 index also gained by 8.22 points to 508.84 points from the previous close of 500.62 points.

The Samvat 2055 ended on Friday turned out to be one of the bullish years with the Sensex registering over 61 per cent gain at 4598 points from the previous year's close of 2853.27 points.

The market saw shift in its stocks from the old market favourites, for most part of Samvat 2055. However, the signs of economic revival changed market perception in the later part of the year and boosted the sentiment at the counters of the cyclical and commoditiy stocks in last couple of months. Select pharma shares also posted handsome gains during the last Samvat.

Although the mood was buoyant at the BSE, the trend at the National Stock Exchange was not very encouraging as pivotals registerd marginal gains after opening on a weak note in the 90-minute moorat trading held between 1900 and 2030 hours IST.

Total turnover on the BOLT system at the BSE reported was Rs 7.46 billion.

Pentafour Software topped the list of turnover by registering the highest turnover of Rs 874.7 million followed by Satyam Computers Rs 748.7 million, Zee Telefilms Rs 495.4 million, Ranbaxy Rs 485.7 million, Global Telesystems Rs 377 million, Infosys Technologies Rs 374.1 million, Silverline Rs 211.8 million, Himachal Futuristic Com Rs 153.2 million, Digital Equipment Rs 175.6 million, L&T Rs 142.8 million, ITC Rs 135.8 million, Reliance Petroleum Rs 126.2 million and SBI Rs 135.8 million.

Sentiment at the NSE remains low-key

Vikram Samvat 2056 made a firm start at the National Stock Exchange as share prices registered moderate gains during the moorat trading on buying support from institutional investors and local operators today.

Reflecting the market mood, the S&P CNX Nifty Index opened at 1364.70 points which happens to be the day's low, flared up to 1382.25 points by touching a day's high of 1382.25 points, before closing at 1369.60 points, showing a net gain of 5.05 points as against the Friday's close of 1364.55 points.

The S&P CNX Nifty Junior rose smartly by 36.40 points to 2660.75 points as against the previous close of 2624.35 points.

According to marketmen, select infotech stocks like Satyam Computers, Global Telesystems, Pentafour Software staged a smart rally alongwith other index-based stocks.

The market witnessed speculative selling pressure towards the fag end of trading. Dealers also attributed the selling pressure to the difference of timings of moorat trading session at the BSE and NSE.

Business volume was at a low ebb compared to the daily business, market sources said and added that the big bulls and FIIs did not participate actively during the moorat trading.

During Samvat 2055 the S&P CNX Nifty index at the NSE has posted a gain of over 60 per cent. The Nifty closed at 1364.55 points from the previous year's close of 831.25 points.

The market saw a complete shift to infotech stocks from the regular market favourite stocks like Tisco, Telco, Reliance and State Bank of India during the last Samvat year. Traders are expecting firm trend in the new Samvat as well.

Positive factors like the revival of the Indian economy, low inflation rate and possible credit offtake in the next couple of months are likely to play a major role and will give clear upward direction to the markets, analysts said.

Shares which posted an impressive gains during the moorat trading were Infosys Technologies, Satyam Computer, Pentafour Software, Software, ACC, Apollo Tyres, BHEL, BSES, Dr Reddy's, Colgate, Glaxo, Ranbaxy, Telco, Tisco and Tata Tea.

Moorat trading in the infotech age

Moorat trading, also known as moorat trading, a traditional way to begin the trading in the Bombay Stock Exchange for the new year, has become more of a ritual than anything else in this age of information technology.

The tradition which was kept alive by the 125-year old BSE, in this era of screen-based trading system, is also being followed by the National Stock Exchange and Over The Counter Exchange of India. This reflects the respect shown by the market to India's culture, dealers said.

In the late '80s and '90s, moorat trading on Diwali was a celebration of sorts, as the entire broker fraternity would participate in the Laxmi Pujan, Chopda Pujan (accounts-books), dressed in their traditional outfits.

When families spread bonhomie at the bourses

The brokers would be accompanied by their families, who would also arrive dressed in brightly coloured outfits, decked up with accessories, bringing the festive spirit into the premises of the stock exchange.

The entire exhange would beam with energy: families would interact and share the joy of the season with each other, exchanging warm greetings and friendly hugs.

Stockbrokers' families still do come to their offices in South Bombay from different locations of this megapolis for the moorat, but the enthusiasm is waning, brokers said.

Old sentiments, new accounting systems

Recalling the olden days, stockbroker Nikhil Vakharia said that Ssamvat has lost its importance since the exchange and the brokers' offices gave up the old accounting systems after the government's restrictions to work under the financial year system. The entry of computers also forced them to change accordingly.

Prior to computerisation, the business year use to end before dhan teras and new books use to come in force on the Diwali day. After the Laxmi Pujan, the moorat trading used to be performed.

"Though the accounting system is gone, we continue to perform moorat trading on the Diwali day for sentimental reasons," said Pravin Shah, another BSE member.

Vakharian said brokers get nominal orders on the moorat day, and is just part of token trading.

He was optimistic that share prices are likely to witness further surge in the coming days, following a sharp decline in the annualised badla (rate of carry forward deals) rates during the weekly badla trading on Friday.

According to him, the badla rate quoted at 7 per cent, which is lower than the interbank call money rate of eight per cent, will boost the market sentiment.

Outlook for Samvat 2056

Broker Jignesh Shah asid the market is likely to continue the bullish trend in Samvat 2056 year.

Samvat 2055 was a bullish year, he recalled. The Sensex gained over 61 per cent or 1745 points to 4598 during the period. The total market capitalisation on the BSE flared up from over Rs 4.50 trillion to an estimated Rs 6.80 trillion this Samvat, registering an increase of Rs 2.30 tillion or over 50 per cent.

Surpassing the landmark 5000 level by the Sensex during the year was one of the major events in the history of Asia's oldest bourse. The Sensex had touched all-time high of 5075 on October 14, 1999 before closing at 4598.45 points on November 5, 1999, the last trading day of Samvat 2055.

Analysts are hopeful of a bullish trend in the new Samvat, and said that the revival of economy, and picking up of credit offtake, would play a major role in boosting the sentiment.

UNI

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