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Our Bureau

Mumbai, July 15 Even as dark clouds and heavy showers blotted out the sun over Mumbai for the second day in a row on Wednesday, the Sensex gained almost 400 points, also did an encore of Tuesday.

The index breached the 14,000 mark, marching on from its 453-point rise of Tuesday as foreign institutional investors and domestic institutions bought equities. The retail investor, smelling profits, sold. The broader Nifty was up almost three per cent, closing at 4,233.

“The rally was in sync with the positive global trends ; indications of good monsoons and the recent announcement by the Finance Minister on divestments helped,” said Mr Dharmesh Mehta, Head of Broking at Enam Securities.

Mr Arun Kejriwal of KRIS said: “It rained in Mumbai, but the markets were buoyant as though there were already enough rains in the whole of India”. He put down the rise to a technical bounce-back from the earlier oversold levels of the past few days.

The FIIs were net buyers for Rs 255 crore and domestic institutions for Rs 273 crore. Among domestic investors, there was some heartburn over the market volatility caused by the FIIs buying and selling large amounts within short time spans. One good thing was that they were buying in cash on Wednesday and not just in Futures and Options market although it was peanuts compared to their earlier purchases, noted Ms Bijal Mehta, an official at a leading brokerage.

Although mutual funds were net buyers, several said they would wait and watch. “We are maintaining cash as we feel the downtrend is still not complete,” said a fund manager who did not want to be identified.

Many retail investors did not participate at all. Mr D. K. Surana, who kept away, said: “I am rather conservative , because it is difficult to fathom what has been happening the last few days.” Those who did, made short-term profits, explained another broker, as he punched in sell orders for stocks the client had bought on Friday.

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