Sensex surpasses 11,000 mark
Brokers said the latest gains appeared to be sparked by news the government plans to introduce full convertibility of the rupee.india Updated: Mar 26, 2006 13:23 IST
Thestock market bellwether on Tuesday pushed above the crucial 11,000 mark, joining the league of Dow Jones, but the gains were pared due to a technical correction and it ended at 10,905.20 points - still a record closing high.
Incidentally, Pakistan's KSE-100 index too breached the 11K mark on Tuesday, even as the Dow Jones industrials closed at 11,274.53 points.
The Bombay Stock Exchange's 30-share index, known as Sensex, fell 35.91 points, or 0.3 per cent, to 10,905.20 at close after touching a record 11,017.25 during the day.
The National Stock Exchange index Nifty slid 3.35 points, or 0.1 per cent, to 3,262.30 against its intra-day highest level of 3,292.15.
Brokers said the latest gains appeared to be sparked by news the government plans to introduce full convertibility of the rupee, a major liberalisation which should attract much needed foreign investment to keep the country booming.
They said the falling market received support from capital goods and oil sector shares, which saved the Sensex from a major fall.
BSE broker Rajiv Malik said foreign funds' interest was buoyant after talks of full convertibility of the rupee, which indicate more focus on the economic growth.
Another BSE broker said market participants were not interested in selling at such profitable levels as the market still had a lot of energy left in it thanks to strong fundamentals, sustained domestic buying and retail (investor) appetite for equities.
Foreign investors were major buyers, investing a record 10.7 billion dollars in 2005 and almost 3.5 billion dollars more so far this year, confident of the country's good economic growth in FY'06.
The market received a jolt as Sensex-heavy Infosys Technologies declined after US Federal Reserve Chairman signalled interest rates will probably increase. About 60 per cent of the software revenue comes from the US market.
The IT sector index fell by 35.54 points at 3912.06. Infosys fell Rs 17.90 to Rs 2,946.95, Wipro by Rs 12.65 at Rs 531.45 and Satyam Computer by Rs 13.75 at Rs.807.55.
The index escaped from major loss as another Sensex-heavy Bharti Tele-Ventures rose after UBS raised its price target for the stock on expectation of higher sales. The teck index was still lower by 17.35 points at 2619.44.
Auto index fell sharply by 75.95 points at 5271.62, Bank index by 51.09 points at 5263.80, Consumer durable index by 24.45 points at 3225.67, BSE smallcap index by 24.69 points at 6238.73 and BSE midcap index by 7.54 points at 5087.74.
However, Capital goods index gained 89.20 points at 8128.02, PSU index by 28.61 points at 5916.98, Oil and gas index by 21.08 points at 4737.42, Healthcare index by 12.65 points at 3631.61, Metal index by 12.44 points at 7795.58 and FMCG index by 4.22 points at 2047.49.
First Published: Mar 26, 2006 13:23 IST