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Low badla rate helps market to overcome Kargil impact; buying frenzy propels Sensex up 4 pc to 3925 level

The Bombay Stock Exchange opened on a firm note as operators seemed determined to discount the Kargil crisis.

The 30-share benchmark index, the Sensex, skyrocketed to the 3925 level by noon, propelled by across-the-board buying frenzy. On Friday, the index had closed at 3773.32. Thus, the Monday morning gain was about 150 points or almost four per cent.

The other major indices also made substantial gains. Dealers said low badla (rate at which forward deals are struck) was what triggered the spurt, prompting operators to build fresh positions.

The institutional buying was limited in the morning session. Long positions were reduced significantly and profit-booking was at higher levels.

Commodity stocks were on the upswing on speculative buying. So were pharmaceutical stocks, led by Novartis. Software stocks staged a recovery, led by Satyam Computers which hit the upper limit early enough. SBI and Reliance Industries also recovered on speculative buying.

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