The Hindu : Business : Sensex shoots up further by 87 points

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Wednesday, Aug 03, 2005

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Business

Sensex shoots up further by 87 points

Japanese, European funds buying boosts sentiment

MUMBAI: Led by steep rally in petrochem giant, Reliance Industries (RIL), the Sensex on Tuesday shot up further by a steep 86.59 points for the seventh straight session and ended at another record high of 7756.04 on sustained heavy buying by foreign institutional investors on the Bombay Stock Exchange.

Despite incessant rains, the benchmark rose sharply by 451.63 points or 6.18 per cent in the past seven successive trading days.

The BSE-30 share sensitive index opened firm at 7683.13 against yesterday's close of 7669.45 and rallied further to a life-time high of 7762.80 before concluding at 7756.04, a handsome gain of 1.13 per cent.

Brokers described the steep rally as a liquidity-driven one and added that FIIs, mainly from Japanese and European funds, were said to be the major buyers who continued to boost the market sentiment, brokers said.

A week after monsoon fury battered Maharashtra, Mumbai on Tuesday limped back to normality with rail, road and air services functioning without disruption giving respite to commuters and attendance at the stock exchange was also better with the smart rise in the volume of business, they added.

Refinery, IT, public sector undertakings, auto and metal segments attracted heavy buying interest from institutional investors while operators and retail investors also joined the buying bandwagon and were said to be active in small-cap and mid-cap counters, a dealer said.

Other index-based scrips such as Infosys Technologies, Tata Motors, TCS, SBI, BHEL, Grasim, Dr. Reddy's Lab, Hindalco, Maruti, ONGC, Satyam Computer, ITC, Bajaj Auto, Cipla and ACC also notched up sharp to handsome gains, contributing to the Sensex rise. The BSE-100 index spurted by 56.06 points to 4146.37. The volume of business rose sharply to Rs. 3,706.56 crore from Rs. 2,247.11 crore. RIL topped the list of highest traded securities with a turnover of Rs. 291.52 crore. — PTI

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