Sensex surges by 125 pts on increased FII activity
The 30-share index gains 125 points ending the day at 10,876.19 against Tuesday's close of 10,751.66.india Updated: Aug 02, 2006 17:00 IST
Taking a cue from firm Asian markets, the stock market on Wednesday surged to a strong finish at 10,876.19, an impressive rise of 125 points, riding high on increased activity by institutional investors.
Initially, touching a low of 10,730.13, the Bombay Stock Exchange (BSE) 30-share sensitive index (Sensex) later turned better and gradually moved upwards to 10,891.38 before ending the day at 10,876.19 against Tuesday's close of 10,751.66, a net gain of 124.53 points or 1.16 per cent.
The National Stock Exchange's (NSE) S&P CNX Nifty also gained by 34.30 points or 1,09 per cent to 3,182.10 from previous close of 3,147.80.
Foreign Institutional Investors (FIIs) and local mutual funds were believed to be engaged in across-the-board buying support, with their focus on frontline counters.
FIIs, which have been consistent net buyers since last week, pumped in about Rs 100 crore in derivatives on Tuesday but were negative in the Cash.
In Asian markets, the Hang Seng ended moderately higher by 121.38 points, the Nikkei by 23.38 points, Singapore ST by 8.95 points and Kospi by 7.75 points.
FIIs and private mutual funds were seen picking up shares in sizeable quantity after the midsession, stockbrokers said.
The market has almost discounted the negative factors like high oil prices and hardening interest rates, they added.
Global crude oil prices rose past $75 a barrel level in Asian trade on escalation of the conflict in West Asia.
Metal and Capital Goods counters were in the forefront, notching up handsome gains.