The Hindu : Business : Sensex hits new high

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Friday, Sep 16, 2005

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Business

Sensex hits new high

Brisk activity in small-cap stocks

ANOTHER PEAK: The Bombay Stock Exchange created history with the 30-share sensitive index touching a new intra-day peak of 8294 before closing at 8283.76 on Thursday. — Photo: PTI

MUMBAI: Riding on renewed buying spree, the Sensex soared by 94 points, scaling new heights on Thursday, while small-cap stocks attracted brisk activity in volatile trading even as the market withstood an onslaught of profit selling by public sector financial institutions.

The Bombay Stock Exchange (BSE) benchmark 30-share sensitive index (Sensex) scaled a new intra-trade peak of 8294.24 before ending the day at a new closing high of 8283.76 against yesterday's close of 8189.48, a net rise of 94.28 points or 1.15 per cent.

Foreign institutional investors and private mutual funds were believed to be heavy buyers in a number of scrips. The FIIs have pumped in Rs. 418 crore on Tuesday, while mutual funds made net purchases of Rs. 316.07 crore.

Small-cap stocks have once again come into investors' focus, scoring impressive gains. The BSE small-cap index was up by 129.71 points or 2.12 per cent at 6253.26.

Cutting short the ten-day bull run yesterday, the market seemed to be in a correction mode, but Thursday's price rally paved the way for Sensex to touch the anticipated 8400 level before any healthy correction took place, brokers said. The fund buying was so aggressive that it absorbed sales made by public sector institutions such as Life Insurance Corporation and Unit Trust of India, they added.

News that foreign direct investment (FDI) inflows might cross the $5 billion-mark this fiscal and a statement by the Finance Minister that a comprehensive law would be made next year to overhaul the Income-tax Act, had a positive impact on market sentiment.

PTI

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