The Hindu : Business : Sensex gains on renewed FII inflow

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Tuesday, Nov 08, 2005

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Business

Sensex gains on renewed FII inflow

The IT sector led the rally bolstered by appreciating dollar against the rupee

MUMBAI: Riding high on renewed foreign institutional investment inflows, the Sensex extended its winning streak to the fourth straight day on Monday and ended 134 points up at a three-week high of 8206.83 as market valuations remained attractive amid weak trend in Southeast Asian markets on the first day of the week.

Foreign institutional investors once again, seemed to have turned bullish about the prospects of a robust growth in the economy for the current fiscal.

The Bombay Stock Exchange's benchmark 30-share sensitive index (Sensex) opened firm at 8083.59 and later rallied sharply to the intra-day high of 8216.42 before ending at 8206.83 against last Wednesday's close of 8072.75, a net rise of 134.08 points or 1.66 per cent. The Sensex had risen by 521.19 points or seven per cent in four sessions since October 31.

The FIIs, who had pulled out sizable funds during October, reportedly were engaged in covering short positions in the Futures segment at the prevailing market levels. Operators and domestic mutual funds joined the bandwagon and made heavy commitments in key counters.

The IT sector led the price rally bolstered by appreciating dollar against the rupee. Bank shares also surged to a strong finish on heavy FII purchases.

After a sharp correction of 949 points or 11 per cent during October, FIIs seemed to be keen on equities at the prevailing price level, brokers said adding that domestic funds, however, were more aggressive than their counterpart.

RIL, Infosys Technologies, BHEL, Dr. Reddy's Lab, Grasim, Maruti Udyog, ONGC, Hero Honda, Tata Steel and Bharti Tele-Ventures recorded sharp gains on heavy buying support.

In the Asian markets, the Nikkei, the Hang Seng and Taiwan indices ended with substantial losses.

The broad-based BSE-100 index strengthened further by 69.67 points to 4318.67.

The BSE-200 and the Dollex-200 were quoted up at 1037.48 and 378.21 against 1020.53 and 376.07 respectively.

The BSE-500 shot up by 54.59 points to 3319.76 and the Dollex-30 ended higher at 1475.32 against 1466.96. — PTI

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