The Hindu : Business : Sensex extends gains

Online edition of India's National Newspaper
Tuesday, May 30, 2006

Business

Business

Sensex extends gains

MUMBAI: The Bombay Stock Exchange sensitive index (Sensex) on Monday added 44 points, closing the day at 10853.14 after a roller-coaster ride, even as there were strong indications of consolidation at the current levels.

The BSE 30-share Sensex fluctuated erratically between 10992.38 and 10781.61 on alternate bouts of buying and selling by domestic funds, as also retail investors.

Finally, the Sensex closed the day at 10853.14, a net rise of 43.79 points from Friday's close as investors continuously took profit at the day's higher levels, leading to swift falls.

On the National Stock Exchange, the S&P CNX Nifty closed higher by 5.30 points at 3214.90. Though the market was partially influenced by overseas trend, the short-term outlook seemed to be not so bright as the key driver, foreign institutional investors (FIIs), kept pulling out from the Cash segment while taking fresh positions in Futures and Options.

Domestic financial institutions were believed to be buyers in blue chip counters in a bid to bring stability in the market, market players said. Even as a possibility of the U.S. interest rate hike and high global crude oil prices continued to cause concerns among investors, the monsoon in India, which had reached the southern part of the country was expected to have some positive impact on the market sentiment, they added.

The Sensex's gains for the third straight day, however, were attributed to a smart rally in select heavyweight counters. ONGC, Satyam Computer, HDFC, Infosys Technologies, Hero Honda, L&T, Tata Motors, Tata Steel, SBI and BHEL registered handsome gains on fresh buying support from local funds. — PTI

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