Old economy stocks lead sensex rally
Mumbai: Broad-based buying by foreign institutional investors (FIIs) boosted the market sentiment on Friday with the BSE sensex closing 3.5 per cent higher at 2,811.60. As many as 24 out of the 30 sensex stocks recorded gains.

The broader 50-scrip National Stock Exchange index rose 2.71 per cent to 914.10 points. Hopes of a cut in lending rates by the RBI, the governments resolve to complete divestment in 13 PSUs and reports that India has achieved a better than expected GDP growth of 4.4 per cent in the April-June 2001 quarter brought back buyers into the markets.

Rate cut hopes also fuelled the rally in banking stocks. Bank of Baroda (up 5.94 per cent to Rs 36.55), ICICI Bank (up 5 per cent to Rs 71.25) and SBI (up 3.91 per cent to Rs 164.85) were the top gainers in the banking sector.
Back to News Review index page  

Four FIIs manipulated market
Mumbai: The SEBI investigation into the March stock market scam has revealed that nine overseas corporate bodies and four foreign institutional investors helped Ketan Parekh manipulate the stock markets.

The OCBs named by SEBI include Almel Investment, Viceroy Investments, Guardian Financial and Greenfield Investment, while four sub accounts of FIIs like RP&C, Credit Agricole Lazard Finance, Deutsche Bank and CSFB. The total trading of these sub accounts was to the tune of Rs 14,000 crore during Jan 2000 and March 2001.

The SEBI report says that Ketan Parekh and his entities misused these OCBs and FII sub accounts for market manipulations and circular trading.
Back to News Review index page