The Hindu : Business : Sensex closes at new peak of 10,111

Online edition of India's National Newspaper
Saturday, Feb 11, 2006

Business

Business

Sensex closes at new peak of 10,111

MUMBAI: Driven by sustained foreign institutional investment inflows, the stock market once again turned strong after a brief pause even as the Sensex closed 66 points up at a new closing peak of 10,110.97 in volatile trading and indicated bullish sentiment for the near term.

The Bombay Stock Exchange benchmark 30-share index (Sensex) also scaled an all-time intra-trade high of 10,122.25 while moving in a relatively narrow range of 65 points.

The Sensex closed at 10,110.97 against Wednesday's close of 10,044.82, a net rise of 66.15 points. Foreign institutional investors were the principal driving force behind the market with a hefty net investments of about Rs. 2,300 crore in the first four days of the month.

Sentiment remained bullish with increased confidence among investors despite reports that the market was now trading at a price-to-earning multiple (P/E) of 16.65 times to its trailing 12-month (TTM) earnings ended December 2005.

Domestic mutual funds too are expected to make aggressive purchases in the near future as, brokers said, they were flush with funds raised through various unit schemes.

Meanwhile, the inflation rate fell to 4.30 per cent for the week ended January 28 mainly due to cheaper manufactured items.

PTI

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