Sensex packs a punch, closes at 10,765.16
Frenzied buying by foreign and domestic funds drove the Sensex up to a new closing peak.india Updated: Mar 10, 2006 17:55 IST
A frenzied buying by foreign and domestic funds drove the bulls in the capital market, whose key index on Friday shot up by 191.62 points to a new closing peak of 10,765.16 after touching an intra-day high of 10,782.34.
The Bombay Stock Exchange benchmark Sensex opened on a better note at 10,581.64 as against the previous close of 10,573.54 and finished at 10,765.16, revealing a steep rally of 191.62 points or 1.81 per cent over Thursday's close.
Foreign Institutional Investors (FIIs), the main driving force behind the rally, reportedly made a handsome investment of Rs 832 crore in cash segment on Wednesday, while they sold equities worth Rs 415 crore in the Futures segment.
During the current year, FIIs have made an impressive invesment of over three billion dollar till March eight, showing confidence in the growth of Indian economy.
According to Morgan Stanley, the selling in futures was due to hedging and this may continued for some more days.
Cement shares along with scrips from capital goods, bank, Auto, Metal and IT displayed remarkably rally on frantic buying spree, dealers said.
Operators and retail investors also made good purchases in select blue-chip counters following heavy FII buying.
Meanwhile, the inflation fell to 4.29 per cent for the week ended February 25 from 4.34 per cent in the previous week.