Market sources say that this modest rally was more due to restriction imposed on forward deals by BSE authorities yesterday rather than anything else. These sources said that there was a “lot of uncertainty” in the market about “the ways things are happening.”

In the follow up action to the steps taken by BSE authorities, the DSE governing body today extended similar curbs on forward group shares to check the persistent fall in share prices. Accord

ing to a DSE release, short selling has been banned and all transactions have to be against delivery. But squaring up of outstanding transaction would be permitted.

According to directives, daily carry over margins in respect of existing positions in sale and purchase of specified shares could be exchanged and fresh purchases could be carried forward. This step has restrained the jobbing limits.

Even through there is uncertainty marketmen were hopeful that what the market is going through presently would be a temporary phenomenon. Mr. Vijay Bhushan, a prominent stock brokers from Delhi says; “Foreign institutional investors are coming into the market. Thus international norms have to be followed. The matter has to be settled quickly.” He however agreed that panic conditions had been created by the attachment of shares. “The principal of negotiable instruments is not being followed. Brokers are worried a great deal because they do not know whether their clients would be able to pay for the shares bought.”

ATTACHMENT UNFAIR:
Other brokers objected to the attachment of the shares on the ground shares per se could not be said to be “tainted” Only the money that was used for buying it could be . They felt that the intentions of the income tax authorize were fine-because it was aimed at way it was sought to be enforced meant that everybody down the line was penalised says a brokers there is no way of knowing whether the shares that I buy today were held benami by the seller Then why penalise me?”

Other analysts also perceived the action by the income tax authorities as "ill conceived" and a "panic reaction". Dr. J.D. Agarwal, Director, Indian Institute of Finance says that in a situation where the government is unable to realise revenue targets this was a measure to protect revenue losses.

He adds that timing of the move was poor because now is the time when the market s are expected to go up. “A lot of companies have declared good dividends and all this money is expected to flow back into the bank deposit rates had been reduced would mean that there could be some shift of money to the share market.

SELLING PRESSURE : Mean while a story doing the rounds but which cannot be confirmed is that selling pressure in the markets that selling pressure in the market may be to bring equity level . This would allow foreign institution investor and financial institutional to buy at low prices. It may be mentioned that foreign investors for long have been complaining that the price earning (P/E) ratios in India do not adequately reflect the real strengths of the company are artifically high and.

Also it is being said (and again this cannot be confirmed ) that the Rs. 3,2000 crore mega issue of Reliance Petrochemicals has prompted speculators as well as investors to liquidate their holding to reinvest in this forthcoming giant size issue.

Reports reaching here form up-country centres, however speak of the FIs having bailed out the markets today as they could lay their hands on small parcets of some active scripts at prevailing prices, However regular speculators and the general investing public seem to have width drawn from the markets.

In the DSE, in today’s deals Hero Honda, Reliance Industries, Hind. Motors, Jaiprakash Industries, Larsen and Toubro and TISCO, were in the limelight on revival of brisk buying. However a few weak spots were DCM. Indian Rayon. Nestle and TELCO following in caressed offerings.