The Hindu : Business : Sensex up 77 points

Online edition of India's National Newspaper
Thursday, Jun 09, 2005

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Business

Sensex up 77 points

MUMBAI: The Sensex on Wednesday shot up by another 77 points as buoyant trend gathered momentum on the Bombay Stock Exchange on the back of heavy purchases by local funds and foreign institutional investors.

After opening weak at 6768.20, the BSE benchmark 30-share index bounced back breaching the 6800-mark during morning trading and later fluctuated between 6862.83 and 6768.20 before ending the day at 6858.24 against yesterday's close of 6781.25, a net rise of 76.99 points or 1.14 per cent.

Bank and IT sector led the price rally on fairly heavy purchases by institutional investors.

Crediting continued upsurge in bank shares to strong expectations of speedy reforms in the sector following the green signal given by the Reserve Bank of India to banks for funding corporates for overseas acquisitions. IT counters too attracted keen demand.

Foreign institutional investors were believed to have stepped up purchases after a brief slowdown in inflows. The FIIs reported net investments of Rs. 87.70 crore on Monday.

Easing crude prices that fell further following OPEC's comments suggesting an increase in crude production output and anticipated rising inventories in the U.S.

Domestic funds were believed to be continued buyers in select heavyweighted counters as also mid-cap shares. — PTI

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