The Hindu : Business : Sensex zooms 98 points on FII buying

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Friday, Mar 04, 2005

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Business

Sensex zooms 98 points on FII buying

By Our Special Correspondent

MUMBAI, MARCH 3. Ignoring high global oil prices, the stock market indices, the BSE Sensex and the NSE Nifty, ended today at their new closing highs on strong foreign fund inflows on the back of the "growth and equity'' oriented budget.

The benchmark Bombay Stock Exchange (BSE) 30-share Sensitive Index (Sensex) ended with a gain of 97.83 points, or 1.46 per cent at 6784.72, after touching an all-time high of 6793.24 in intra-day. The previous high of the Sensex was 6725.92 touched in intra-day trades on March 1. On the budget day the Sensex moved up by 144.14 points to close at 6713.86. The 50-share NSE Nifty index gained 35.60 points, or 1.70 per cent to end at its new closing high of 2128.85, after touching its lifetime high of 2132.75. It recorded its previous high at 2120.85 in the intra-day trades on January 4.

"The BSE Sensex resisted a new all-time high of 6793 today. This occurred on the back of broad based rally and the favourable advance decline ratio,'' said M. K. Srivatsan, senior associate vice-president, Darashaw and Co. According to him, in today's rally, three scrips were advancing for every declining scrip. Some of the pivotals fared exceptionally well with Wipro, Bajaj Auto, Cipla, ONGC and Tisco registering over 3 per cent gains.

"In the process, the Sensex appears to have decisively broken out of a one-month trading range and according to technical analysis it is likely to test higher levels,'' Mr. Srivatsan added.

On the budget day, several key indices including the BSE Sensex registered their life-time highs and this has been followed by the current surge. "Hence this suggests a bullish outlook for the markets in the coming months,'' he added. Bombay Dying was the top gainer among Group A stocks, recording a 14.36 per cent rise and closed the day at Rs. 352.75, a gain of Rs. 44.

Dena Bank gained over 10 per cent and closed at Rs. 35.55 while Birla Corporation moved up 7.5 per cent to close at Rs. 193.60. Volumes remained firm and the traded value was in excess of Rs. 2,600 crores on the BSE. Foreign institutional investors continued to remain net buyers, investing Rs. 538.20 crores on Tuesday after bringing in Rs. 342.80 crores on the budget. In the current year, the FIIs invested Rs. 9,714 crores, including the highest inflow in a month of Rs. 8,719.10 crores in February.

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