The Telegraph
Since 1st March, 1999
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One step closer to milestone

Mumbai, March 8: The liquidity-backed juggernaut continued to roll on Dalal Street today with key indices closing at their lifetime peaks.

The sensex zoomed past the 6900-mark to close at a new record high of 6915.09, while the nifty closed at a historic peak of 2168.95.

Apart from being the fifth straight session in which equities moved up, today's rally indicated the broad buoyancy prevailing in the bourses, particularly after the Union budget.

In the last five sessions, the sensex has gained 264 points and the S&P CNX Nifty by 84.55 points with both foreign institutional investors (FIIs) and domestic investors chasing stocks.

Data available from the Securities and Exchange Board of India (Sebi) reveals that FIIs have so far invested Rs 2501 crore in equities this month. The net purchases by these investors so far can be put at over $2.50 billion.

Dhiraj Sachdev, portfolio manager at ASK Raymond James, expects the current buoyancy to continue due to positive corporate earnings that have so far been sustained.

Brokers, who feel that a technical correction is in the offing, are quick to point out that though corrections are a part and parcel of the game, the markets are in the midst of a strong bull run with a pragmatic budget being the catalyst.

The sensex opened steady at 6885.73, slipped in early trades on profit booking only to pick up as buying gathered steam. It touched an intra-day peak of 6929.59 before closing at 6915.09, a gain of 36.11 points.

Technology shares, which have been largely out of the rally, also took part. Barring capital goods and auto indices, others on the BSE ended in the positive territory. The BSE metal index was the largest gainer as it rose by 81 points.

Pharmaceutical scrips were bullish too. Shares of Dr Reddy's gained by Rs 21.90 to Rs 746.20, Ranbaxy also gained by Rs 23.85 to Rs 1057.95. GSK Pharma was also highly active. The scrip hit an intra-day high of Rs 780 after opening at Rs 752 and ended at Rs 748.35.

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