The Hindu : Business : Sensex up 57 points on strong economic outlook

Online edition of India's National Newspaper
Wednesday, Dec 15, 2004

Business

Business

Sensex up 57 points on strong economic outlook

MUMBAI, DEC. 14. Driven by a bright overall economic outlook with a 6 per cent plus gross domestic product growth for 2004-05 and heavy foreign institutional investment inflows, the Sensex today ended 57 points higher extending its gains for the second consecutive day.

The BSE benchmark 30-share index opened firm at 6280.56 and gradually moved upwards to the intra-day high of 6331.57 before ending the day at 6325.53 against yesterday's close of 6268.72, a net rise of 56.81 points.

Investors seemed to be enthused by the Mid-Year Review released yesterday, which projected India as one of the fastest growing economies even at a relatively lower growth of 6 per cent plus for the current year.

Despite approaching year-end, foreign institutional investors, who generally begin taking profits in the last month of the calendar year, have continued to pump in funds in the Indian bourses.

The FIIs reported a hefty net investment of Rs. 1,233.10 crores last week and were believed to be heavy buyers in index based counters during the trading session.

Operators and retail investors too were heavy buyers but have shifted their focus to mid-cap shares from B1 and B2 sections, which provided good investment opportunity.

The market leader RIL continued to attract brisk activity and ended with moderate gains even as investors discounted the stand-off between the two Ambani brothers over the differences on "ownership issues."

SBI, Tata Motors, Tata Steel, Satyam Computer, Grasim, BHEL, Bharti Tele-Ventures, ITC, ONGC and Maruti Udyog also scored impressive gains.— PTI

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