Sensex 0.9% shy of all-time high
The Sensex at Bombay Stock Exchange rose 485 points or 2.4 per cent to close at a new 33-month high of 20,688, reports HT Correspondent.business Updated: Oct 14, 2010 01:15 IST
The markets witnessed a sharp run on Wednesday with support from global market movements and buoyant inflows from foreign institutional investors (FIIs), registering their highest absolute gain in a day in five months to come within striking distance of their all-time highs.
The Sensex at Bombay Stock Exchange (BSE) rose 485 points or 2.4 per cent to close at a new 33-month high of 20,688. The Nifty at the National Stock Exchange also rose 2.4 per cent to close at 6,234 — 54 points shy of its all-time high closing of 6,288 on January 8, 2008.
Experts, however, see some correction in the markets by next week. “There is huge interest for the Coal India IPO and that will lead to liquidity adjustment in the markets as money will flow into the IPO leading to some correction in the next week,” said R Venkataraman, executive director, India Infoline.
A day after the dismal index of industrial production (IIP) figures led to a fall in the market, it recovered smartly with support coming from FII investors (whose total investment in the calendar crossed R100,000 crore for the first time) and positive news from markets worldwide, especially Europe, towards the second half of the trading here.
FIIs pumped in a total of R700 crore on Wednesday. All the European markets were trading with gains between 1.5 per cent and 2 per cent.
The rally in the Indian markets, however, was concentrated in the large-caps and the mid-caps and the small-cap index at the BSE rose by only 1 per cent as against the Sensex and Nifty gaining 2.4 per cent.
The IT index at the BSE was the biggest gainer and was up 3.2 per cent. The technology and capital goods indices were the next big gainers as they rose by 2.7 per cent each. Among Sensex companies HDFC, TCS and Wipro were the biggest gainers. While HDFC and TCS rose 4.6 per cent during the day, Wipro gained 4.5 per cent.