The Hindu : Business : Sensex rebounds on FII inflows

Online edition of India's National Newspaper
Tuesday, Feb 28, 2006

Business

Business

Sensex rebounds on FII inflows

MUMBAI: The Bombay Stock Exchange benchmark Sensex on Monday rebound strongly after last weekend's downward correction and ended 81 points up at a new closing peak of 10,282.09 on sustained foreign institutional investment inflows, as the Economic Survey projected 8.1 per cent gross domestic product (GDP) growth and prescribed tax and labour reforms to boost industrial growth.

The pre-Budget Survey, which was tabled in Parliament, helped the market maintain its uptrend throughout the trading session.

The BSE 30-share index rallied smartly to the intra-day high of 10,296.22 and closed at an all-time closing peak of 10,282.09 against last Friday's close of 10,200.76, a net rise of 81.33 points.

Foreign institutional investors, who reported net investments of over Rs. 1,890 crore in the first four days of last week, remained the key driving force behind the market with fresh purchases in the Cash segment.

Terming the survey as favourable to the capital market, brokers said the prescription of bold policy reforms in oil sector, as well as tax and labour reforms, would help industry become globally competitive.

The market is unlikely to turn weak unless FIIs begin pulling out investments. They have reposed confidence in the growing Indian economy which is considered to be more attractive than other Asian countries, brokers added. IT counters attracted keen buying interest. Infosys Technologies, Satyam Computer, Wipro and TCS recorded sharp gains.

— PTI

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