Sensex at new closing peak of 10,110.97

Driven by sustained FII inflows, the market once again turned strong, as Sensex ended 66 pts up at a new closing peak.

india Updated: Feb 10, 2006 16:53 IST

Driven by sustained FII inflows, the stock market once again turned strong after a brief pause. The Sensex on Friday ended 66 points up at a new closing peak of 10,110.97 in volatile trade and indicated bullish sentiment for the near term.

The Bombay Stock Exchange (BSE) Benchmark 30-share Index (Sensex) also scaled an all-time intra-trade high of 10,122.25 while moving in a relatively narrow range of 65 points.

The Sensex ended at 10,110.97 against Wednesday's close of 10,044.82, a net rise of 66.15 points or 0.66 per cent.

Foreign Institutional Investors (FIIs) were the principal driving force behind the market with a hefty net investments of about Rs 2,300 crore in the first four days of the month.

The sentiment remained bullish with increased confidence among investors despite reports that the market is currently trading at a price-to-earning multiple (P/E) of 16.65 times to its trailing twelve-month (TTM) earnings ended December 2005.

Domestic mutual funds too are expected to make aggressive purchases in the near future as, brokers said, they are flush with funds raised through various unit schemes.

Meanwhile, inflation fell to 4.30 per cent for the week ended January 28 mainly due to cheaper manufactured items.

US rating agency Moody's Investors Service has assigned its A3 issuer rating and an indicative foreign currency debt rating of Baa1 to Tata Consultancy Services (TCS Ltd).

HLL, L&T, Grasim, Dr Reddy's Lab, Cipla, HDFC, ITC, Hero Honda, Ranbaxy and Satyam Computers were among the sharp gainers.

First Published: Feb 10, 2006 11:14 IST