Mumbai, Nov. 25: The sensex today hit a historic high of 8853.21 at the close of trading, buoyed by robust fundamentals and rising inflows from foreign investors. Market pundits predicted higher gains in the days ahead.
Today’s rise of 109 points marked a 318.24-point gain since November 23. This is, however, tiny when seen against the whopping 909- point rally witnessed since the beginning of this month. Nevertheless, it reveals a dramatic turnaround in the market mood after the clobbering stocks received last month.
While investors were building fresh positions on the first day of the monthly futures settlement, brokers said short-covering by other participants also aided the rally.
Boosted by these factors, the 30-share BSE sensex, which made a firm start at 8760.70 against yesterday's close of 8744.04, shot up to an intra-day new peak of 8863.93 and later ended at a high of 8853.21, showing a steep rally of 1.25 per cent over the previous close. The previous historic closing high was 8799.96 recorded on October 4 and the all-time intra-day high was 8821.84 on October 5.
As the key indices perch on their peaks, the question that hung over the market was where does it go from here.
Arun Kejriwal of KRIS said he expected the sensex to hit the 9000-mark next week and touch the psychological level of 10,000 within a year’s time.
However, others like D.D. Sharma, senior vice-president (research) at Anand Rathi group, feel that the markets are likely to correct before reaching the 9000 level.
According to brokers, in recent times a new crop of foreign investors have entered the Indian market. Coming from Japan, they are believed to be currently active in the market. It is further understood that a leading Japanese investor Nicco is in the process of registering with the Securities and Exchange Board of India (Sebi).
In brisk trading today, nearly all sectoral indices finished in the green, with the biggest gains seen in the banking, automobile, energy and pharmaceutical segments.
However, petrochemical giant, Reliance Industries Ltd ended in the negative territory after Bombay High Court put the demerger scheme on hold after a shareholder said the company had been less than transparent in its disclosures.