Sensex sniffs 20,000
Bulldozing voices of caution echoing all around, the Sensex surged by 311 points – or 1.6 per cent – on Monday to close at a 32-month high of 19,906, just 4.6 per cent short of its all-time high closing of 20,873 in January, 2008. Choppy marketsbusiness Updated: Sep 21, 2010 17:46 IST
Bulldozing voices of caution echoing all around, the Sensex surged by 311 points – or 1.6 per cent – on Monday to close at a 32-month high of 19,906, just 4.6 per cent short of its all-time high closing of 20,873 in January, 2008.
Foreign institutional investors (FIIs) pushed in a net Rs. 1,1716 crore in the latest of a fortnight-long shopping binge that has pushed up the country’s premier 30-share index through the month.
FIIs mainly back large-capitalisation shares. Mid-cap and the small-cap indices continued to lag the Sensex in performance and were up by 0.7 per cent.
FIIs have put in Rs 14,158.6 crore so far in September, taking the Sensex up 1,935 points. That is 10.8 per cent.
“The rally has been primarily driven by the FIIs and has been supported by the absence of any negative news on the global front,” said Sanjay Sinha, CEO, L&T Mutual Fund.
The National Stock Exchange’s Nifty index also rallied during the day and inched closer to the 6,000 mark before closing at 5,980.5 with a gain of 95 points or 1.6 per cent.
The Nifty is 4.9 per cent short of its highest closing value. If the FIIs continue the way they have this month, it may not take long for both Nifty and Sensex to touch new all-time highs.
While the market has been getting support from the Asian and European markets in the current rally, the gains for the Indian markets have outpaced that for all other major markets of the world.
The Sensex and Nifty had the highest rises in relation to other markets on Monday.
Stocks in sectors such as fast moving consumer goods, realty and automobiles remained at the centre of the surge on Monday, rising by 3.5, 1.7 and 1.3 per cent, respectively.
Among the Sensex companies, Reliance Communications, ITC and Hero Honda emerged as the biggest gainers, rising between 4 and 5 per cent.
The rally in the market is not really broadbased. Also, local investors do not seem to have participated as much with much of the liquidity coming from the FIIs.