Sensex regains 18K mark as inflation dips, FIIs keep buying | business | Hindustan Times
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Sensex regains 18K mark as inflation dips, FIIs keep buying

business Updated: Feb 15, 2012 21:26 IST
HT Correspondent
HT Correspondent
Hindustan Times
sensex

Boosted by a downtrend in the inflation rate along with continuing inflows from foreign institutional investors (FIIs), the benchmark 30-share Bombay Stock Exchange (BSE) Sensex regained the 18,000-level on Wednesday after a gap of six months.

The index ended the day with a gain of 1.98% or 354 points at 18,202 — the highest closing since August 2 last year when it last finished over 18,000 points.

The broader 50-share National Stock Exchange Nifty, also rose by 2.14% or 116 points to end the day at 5,532 points. The last time Nifty closed above 5,500 was also on August 1, 2011.

"The spurt in the Sensex is due to the continuous flow of FII money and the lower inflation numbers that have boosted confidence that the RBI will effect a cut in interest rates in March," said Nirmal Jain, MD, IndiaInfoline.http://www.hindustantimes.com/Images/HTEditImages/Images/16-02-12-buss23b.jpg

January inflation was at a two-year low of 6.55%.

Jain expects the midcap index to witness a bigger rally than the Sensex. “The correction in Sensex, when it happens, will also be moderate,” he felt.