The Hindu : Business : Sensex hits new peak

Online edition of India's National Newspaper
Wednesday, Sep 28, 2005

Business

Business

Sensex hits new peak

Heavy buying by institutions

MUMBAI: The Sensex on Tuesday hit a new peak of 8585.76 before heavy profit selling pruned the gains, still ending 47 points up at 8525.52 in highly volatile trade amid squaring up activity ahead of expiry of derivatives contract.

The Bombay Stock Exchange (BSE) benchmark 30-share index (Sensex) opened firm at 8497.25 and later moved erratically in a range of 8585.76 and 8444.98 before ending the day at a new closing peak at 8525.52 against yesterday's close of 8478.91, a net rise of 46.61 points.

Intra-day high

The Sensex scaled an intra-day high at 8585.76 surpassing earlier peak of 8521.75 touched on September 21.

Foreign institutional investors (FIIs) and Indian financial institutions were believed to be heavy buyers at the lower levels while booking profits at the day's higher levels. Operators and retail investors were seen squaring up positions before the end of September contract in futures and options (F&O) segment on Thursday. The market is considered to be strongly bullish for the long term and another sharp rally is not ruled out after announcements of second quarter earnings by corporates from October 10 onwards, brokers said.

Meanwhile, the Reserve Bank expected agriculture growth to be ``normal'' this fiscal and stuck to its average annual inflation target of 5-5.5 per cent for 2005-06 despite the high global oil prices. — PTI

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