The Hindu : Business : Sensex crosses 9200-mark

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Wednesday, Dec 14, 2005

Business

Business

Sensex crosses 9200-mark

MUMBAI: The boom conditions on the Bombay Stock Exchange continued unabated and the Sensex on Tuesday went up by another 130 points to scale new peak at 9274.19 buoyed by sustained buying spree by operators and retail investors coupled with fair amount of FII purchases.

Surpassing the crucial 9175 resistance level, the BSE benchmark 30-share sensitive index headed for new peaks and hit a new intra-day high of 9274.19 before settling at a new closing peak of 9263.90 against yesterday's close of 9133.67, a net rise of 130.23 points or 1.43 per cent.

After a brief initial hesitancy, operators and retailers resorted to across-the-board buying support in a bid to cover their short positions ahead of the Federal Open Market Committee meeting tonight, which is expected to hike the U.S. interest rates by 25 basis points.

Even as the market factored this hike, brokers said investors seemed to be interested in the tone of speech of Fed's Chairman on whether the rate hikes would continue at a measured pace or halt it.

Sentiment was bolstered by increased FII activity at the last weekend. The FIIs reported net investments of a hefty Rs. 420.10 crore on Friday.

Contrary to a general belief of a correction, the Sensex continued to climb as the bullish fervour turned further intensive helped by the government's pro-reform policies.

The government has revived its disinvestment initiative and plans to divest a part of its stakes in six profit-making non-navratna public sector undertakings (PSUs). The broad-based BSE-100 index rose by 62.52 points to 4882.97. — PTI

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