Sensex holds 20,000, but stamina is in doubt
If it took nine trading days and Rs 2,844 crore from foreign institutional investors (FIIs) for the first surge from 19,000 to 20,000 in December 2007, it took only six this time, with the FIIs putting in as much as R11,476 crore. Bull runsbusiness Updated: Sep 22, 2010 02:42 IST
If it took nine trading days and Rs 2,844 crore from foreign institutional investors (FIIs) for the first surge from 19,000 to 20,000 in December 2007, it took only six this time, with the FIIs putting in as much as R11,476 crore.
They seem to be the sole power behind this rally. Big picture
The benchmark Sensex at the Bombay Stock Exchange (BSE) and the broader Nifty at the National Stock Exchange (NSE) played see saw throughout Tuesday but finally closed above the psychological milestones of 20,000 and 6,000 respectively for the first time since January 2008 to close at 20,001 and 6009.
The FIIs poured in R1,878 crore on Tuesday, and the country’s premier 30-share benchmark crossed the 20K mark.
While companies in the software and information technology sector led the Sensex as it breached past the 20,000 mark on Tuesday, there have been certain sectors that have lagged significantly in the Sensex move from 20K in 2008 to 20K now.
While automobiles, fast moving consumer goods and IT have grown strongly, real estate, oil and gas and capital goods have yet to reach their past levels.
The rally was clearly at the top of the market as the mid-cap and small-cap indices at the BSE fell by 1 per cent and 1.3 per cent respectively. The Sensex closed with a 0.5 per cent gain. The Sensex, after falling a little from the 20,000 mark, crossed the big mark again.
Overall in September, FII inflows have topped R16,037 crore ($3.46 bn).
The rally, which is even making the brokers and fund managers anxious has taken everyone by surprise, with no brakes seen. The Sensex has gained 2,000 points this wet September, with FIIs raining money.
Large-capitalisation stocks clearly are the favourites of FIIs but a rally is considered broadbased when both the types of investors and the class of stocks they buy are in a wider range.
First Published: Sep 21, 2010 21:40 IST