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Bombay shares jump

at end on forigen buying

BOMBAY: Blue chip shares rallied strongly to finish sharply higher on Tuesday at the Bombay Stock Exchange (BSE) as foreign institutional investors (FIIs) stepped up their purchases ahead of national elections, brokers said.

"More and more FIIs are taking up positions in a wide range of stocks," said a trader. "It has given a tremendous boost to the market morale."

The 30-share BSE index leapt 45.20 points, or 1.28 percent, to provisional 3,588.86 at close.

The 500-stock CRISIL rose 5.55 points to a provisional 741.98.

Brokers said a big U.K.-based investor was among the active buyers besides some U.S. and other funds.

The FIIs bought into several blue chips in both A and B group shares including TELCO, BSES, SBI, Brooke Bond, SCICI, EI Hotels, Indian Hotels, Asian Paints, Bajaj Auto, Indo-Gulf Fertilisers, Hind Lever and Nestle, the brokers said.

Analysts attributed the sustained FII buying to good valuations compared to emerging markets and an anticipated rise in prices after elections.

"These guys are pumping in a whale of cash," an analyst said. "They see a big opportunity out there."

Nestle rose 17.5 rupees to 387.50, Brooke Bond 26 to 384, Asian Paints 25 to 387.50, EI Hotels 50 to 690, Procter & Gamble 35 to 695 and Indian Hotels 15 to 765 (all provisional closings).

Hind Lever and Siemens each rose 30 rupees, to 760 and 610 respectively (both provisional).

Bank stock firmed 6.25 rupees to 280 with over 3.1 million shares traded and Reliance was 2.25 at 223 in trading volume of more than 3.2 million shares.-Reuter