Stocks zig-zagged up and down on the Bombay Stock Exchange on Friday, indicating a volatile mood after a rally this year stymied by concerns on a weakening rupee and uncertainties in the global environment and local corporate performance.
The BSE’s 30-share index ended up marginally at 19,704 but after opening at 19,765, it surged to 19,833 within minutes at 9.15 am only to slump nearly 264 points to 19,569 in an hour as losses in SBI, Tata Motors and Sun Pharma spooked the mood.
The index has lost 3% or 519 points overall this week. It swung by 1.3% in intra-day trading on Friday, moving both ways.
By 12.22, it had recovered 204 points to 19,773 and then traded within a 100-point range for the rest of the day as Larsen & Toubro and Tata Steel stocks, battered after results, bounced back.
The benchmark index has been fluctuating sharply all through the week starting from Monday when it touched a 31-month high intraday.
“The single biggest reason for sharp fluctuations is heavy reliance on foreign institutional investments. As a result, any global development will have its repercussions on the Indian equity markets,” said Apurva Shah, head of research of broking firm Prabhudhas Liladhar.
FIIs have bought $ 14 billion ( Rs. 78,000 crore) worth stocks so far in 2013 but their anxieties are reflected in the market mood.