The Hindu : Business : Sensex nearing 10,000-mark

Online edition of India's National Newspaper
Wednesday, Feb 01, 2006

Business

Business

Sensex nearing 10,000-mark

Asian and U.S. markets remain buoyant

MUMBAI: The stock market benchmark Sensex maintained its upward surge on Tuesday, inching closer to the historic 10,000-level on hectic fund-based buying influenced by economic growth and encouraging corporate results by blue chips.

The Bombay Stock Exchange 30-share Sensex, after setting an intra-day record high of 9945.19 on Monday, remained bullish during the day and set a new closing peak of 9919.89, a calling distance from the 10,000-mark.

Tracking the robustness of the global markets, the sensitive index had gained about 740 points during the last trading week.

Since the bull-run was unleashed in May 2004, the Sensex has risen from 4505 to 9883 on Friday and the market capitalisation swelled by over two-and-half times to Rs. 12,45,000 crore.

The steady inflow of encouraging corporate earnings reported by most of the companies remained the constant supporter to the trading sentiment.

"The market seemed to be in a hurry to get to the magical 10,000 mark, as there is mad rush of buyers in blue chip stocks with attractive quarterly results," said an NSE broker. He said the market was looking for a pre-budget rally and covering a short distance of just 80 points was not a hard task for the market.

"The last lap of the Sensex journey to touch the historic level is being supported by stocks of capital goods and metal," said a BSE broker. He said the gains recorded by all Asian and U.S. stock markets in the last few trading sessions remained as a supporting factor.

Liquidity driven

"The market is completely liquidity-driven and there really appears to be little to stall it," said a retail investor. He said foreign institutional investors remained key-drivers for the stock markets as they invested $10.7 billion in 2005.

— PTI

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