The Hindu : Business : Sensex zooms 135 points on funds buying

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Thursday, Aug 17, 2006

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Business

Sensex zooms 135 points on funds buying

MUMBAI: The upbeat mood gathered momentum on the Bombay Stock Exchange and the benchmark Sensex registered a sharp rise of over 135 points on Wednesday to close at a near three-month high of 11448.31, driven by sustained foreign institutional investment inflows and buoyant Asian advices.

Tuesday's weaker-than-expected U.S. inflation data that helped less possibility of a rate hike by the Federal Reserve in September meeting prompted a sharp rally in Asian markets.

The 30-share sensitive index (Sensex) opened firm at 11384.05 and gradually moved upwards to the day's high of 11507.92 before closing at 11448.31 from Monday's close of 11312.99, a net rise of 135.32 points or 1.20 per cent.

In a long six-session rally, the Sensex has advanced by 636 points or 5.88 per cent to Wednesday's closing levels from the close of 10812.64 on <243>August 7.

On the National Stock Exchange, the S&P CNX Nifty jumped by 42.95 points or 1.3 per cent to 3356.05.

The market was backed by increased FII activity in the last three weeks while economic fundamentals remained strong with robust first quarter corporate earnings, brokers said. Crude prices also fell below $73 a barrel in Asian trade after the UN ceasefire in Lebanon took effect.

Bank stocks hogged the limelight as the U.S. inflation data almost indicated against a Federal rate hike while PSU shares scored smart gains on news that the Government will smoothen out policy and regulatory shortcomings in infrastructure to sustain high growth. — PTI

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