Sensex scales new peak, closes 129 points up
It registered sharp gains for the second consecutive session even as select major counters reached dizzy heights.india Updated: Mar 27, 2006 16:57 IST
Powered by sustained and heavy fund inflows, the stock market benchmark index on Monday soared by a whopping 129 points to a new closing peak of 11,079.02.
It registered sharp gains for the second consecutive session even as select heavyweight counters reached dizzy heights.
The price rally was so intense that the Bombay Stock Exchange (BSE) Benchmark 30-share Index (sensex) gained by 238.43 points or 2.2 per cent in the last two sessions.
The sensex started off on a strong footing at 10,996.36 and gradually moved upwards to an all-time intra-trade record high of 11,101.42 and even ended the day at a new closing peak of 11,079.02 against Friday's close of 10,950.30, a net rise of 128.72 points or 1.18 per cent.
Crediting the market's impressive advance to liquidity amid concerns over liquidity crunch faced by financial system, market players said "institutions are believed to be directing funds to soaring bourses."
Foreign Institutional Investors (FIIs) and local mutual funds poured in their investments into equity, particularly index-based stocks pushing them to dizzy heights, they added.
FIIs reported fairly heavy inflows during last week, taking the total net investments to Rs 4,831 crore in equity so far in the month.
Domestic mutual funds made net purchases of Rs 424.83 crore in the last week and their net investments amounted to Rs 2,948 crore so far in March.
Operators and retailers seemed to be covering their short positions in derivatives in view of approaching expiry of the contract.