The Hindu : Business : Sensex trims initial gains

Online edition of India's National Newspaper
Saturday, May 06, 2006

Business

Business

Sensex trims initial gains

MUMBAI: The Bombay Stock Exchange benchmark Sensex on Friday advanced higher on the back of rising Reliance Industries' scrip and closed at a new peak of 12,359.70. RIL shares, after touching an intra-day high of Rs. 1,109, closed at Rs. 1,099.50, revealing a gain of Rs. 20.35.

In highly volatile trading, the 30-share Sensex started firm at 12,373.47 against Thursday's close of 12,347.63 and soon shot up to a new intra-day high of 12,443.54 on heavy funds buying.

Later, as shares, especially in the banking segment, fell sharply, the index nosedived to a low of 12,304.59 and closed at 12,359.70, showing a moderate gain of 12.07 points.

Foreign institutional investors who turned active buyers made a net buying of Rs. 907.20 crore on May 3 and took the total buying in the first two days of the month to an impressive Rs. 1,125.70 crore which boosted sentiment, a broker said.

During the early trade, some of the market-friendly reports such as government announcement that there was no plan for an immediate hike in fuel prices and Moody's Investors Service raised India's Ba2 domestic currency rating to stable from satisfactory made some impact on sentiment, he said. The National Stock Exchange index, S&P CNX Nifty, touched a new intra-day high of 3676.55 and closed at 3663.95, a new closing high.

BHEL rallied by Rs. 31.85 to Rs. 2395.35 on heavy buying after the company's statement that its electricity generating sets produced a record 402.6 billion units during 2005-06, up five per cent over the previous year.

PTI

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