Sensex touches 20,445 — bulls on steroids eye all-time peak
Stock markets remained in a bullish mood on Friday with the indices closing near their all-time highs, drawing strength from the month-long rally powered by inflows from foreign institutional investors. HT reports.business Updated: Oct 02, 2010 00:50 IST
Stock markets remained in a bullish mood on Friday with the indices closing near their all-time highs, drawing strength from the month-long rally powered by inflows from foreign institutional investors (FIIs). Even the market regulator Securities and Exchange Board of India’s (SEBI) decision to bar 197 FIIs and 342 sub-accounts from fresh trading into Indian equities on account of non disclosure of their holding structure did not dent the positive sentiment.
FIIs poured in another R4,755 crore on Friday after pumping a record of close to R25,000 crore in September to take the Sensex and Nifty up by another 1.9 per cent.
The Sensex at the Bombay Stock Exchange closed at a new 32-month high of 20,445 on Friday, just short of 448 points below its all-time high closing and the Nifty at the National Stock Exchange closed at 6,143: short of 145 points to its all-time high closing of 6,288 registered on January 8, 2008.
The momentum at the stock markets that saw the Sensex rise by 2,100 points or 11.7 per cent in September does not seem to be slackening.
Experts say this momentum will continue in line with the liquidity flows. "Markets are stretched right now and are a little ahead of expectations but the momentum will continue till the flows continue," said Vikas Khemani, co-head, institutional equities, Edelweiss Capital.
The Sensex’s gains on Friday were well supported by the global markets, which also traded strong. The Shanghai Composite in China closed the day with a gain of 1.72 per cent and the Singapore market rose 1.1 per cent.
European markets, too, were trading strong and the premier indices in UK and Germany were up by 1 per cent and 0.5 per cent respectively.
Back home, the Sensex was buoyed by sectors such as real estate, metals, capital goods and IT that emerged as strong gainers during the day. The real estate index at the BSE rose 4 per cent followed by the metal index at 3.9 per cent.
197 FIIs barred from trading
SEBI on Friday barred 197 FIIs (of which 11 surrendered their registration), including those managed by HSBC, Deutsche Bank, RBS, and Standard Chartered. It also banned 342 sub-accounts (125 of which surrendered their registration to Sebi) from further trading in stock markets for non-compliance with its guidelines on holding structure. Sebi had asked the FIIs to provide details on their structure and make relevant declarations.