The Hindu : Front Page : Sensex closes above 10,000-mark

Online edition of India's National Newspaper
Wednesday, Feb 08, 2006

Front Page

Front Page

Sensex closes above 10,000-mark

Special Correspondent

Banking, sugar and automobile stocks hog limelight

MUMBAI: Stock market indices on Tuesday closed at record highs and the benchmark Bombay Stock Exchange 30-share sensitive index (Sensex) closed above the 10,000-mark for the first time ever.

The Sensex closed up 101.86 points or 1.02 per cent at 10,082.28. It touched an all time high of 10,099.58 in intra-day trading. The Nifty closed up 19.65 points at 3020.10, a record high. It touched an intra day high of 3025.10.

Buying was witnessed across sectors such as, banking, automobile, sugar, consumer durable, fast moving consumer goods (FMCG) and pharmaceutical scrips. Tata Motors, Dr. Reddy's Lab, ICICI Bank MTNL, HDFC Bank and Cipla lifted the Sensex up sharply.

The bull-run on the bourses was backed by strong growth in the economy of around 8.1 per cent with strong growth in the manufacturing sector, stable interest rates and strong rupee.

PTI reports:

Enthused by sustained purchases by foreign institutional investors and impressive economic growth projections, bulls tightened their grip, driving it higher by 339.70 points or 3.49 per cent in two sessions.

The FIIs, who have been consistent net buyers since January 31, reported hefty net investments of Rs. 626.50 crore on February 3.

The Union Finance Minister, P. Chidambaram, responded positively saying the Sensex reflected the business confidence and strong economic fundamentals while advising investors to take informed decisions or invest through mutual funds.

Meanwhile, the bullish trend was termed as a pre-budget rally by brokers, admitting that the FIIs had been hedging their positions in the Futures segment while pumping in the proceeds in the Cash segment.

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