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Stocks on a joyride

Mumbai, March 27: The party continued on Dalal Street today with the Sensex climbing to a fresh high for the fourth day in a row on the back of robust purchases by foreign institutional investors (FIIs). Foreign investors are believed to have made net purchases of over Rs 2,100 crore in today’s trade.

Brokers said the sentiment was also buoyant on hopes of a turnaround in the domestic economy along with expectations that the Reserve Bank of India (RBI) would not come up with any shock in the forthcoming monetary policy.

Trading began on an optimistic note with the 30-share BSE Sensex beginning higher at 22116.23 and touching a record high of 22307.74 during intra-day trades.

While equities remained in the green throughout the session, the Sensex settled at 22214.37, up 119.07 points, or 0.54 per cent, from its previous close.

The 50-share NSE Nifty rose 40.35 points, or 0.61 per cent, to end at a new peak of 6641.75. It also recorded a historical intra-trade high of 6673.95.

Market circles added that the rise might also be attributed to hectic short covering on the last day of March contract of futures and options. Though investors are upbeat on hopes that the business-friendly NDA government may come to power, a few experts do not rule out the possibility of correction in the near term.

While sectors such as auto and realty apart from oil and gas stocks witnessed buying interest, PSU banking stocks such as the State Bank of India and Punjab National Bank were the key highlights following an upgrade from Goldman Sachs. It is felt that the nationalised banks, whose valuations have suffered on account of concerns relating to bad loans, will benefit in the event of a turnaround in the domestic economy.

The SBI notched up a gain of 4.04 per cent, the biggest among Sensex stocks. Shares of PNB rose 3.64 per cent, while Bank of Baroda saw a rise of 2.28 per cent. FIIs have so far this month pumped nearly $3 billion into domestic stocks.

Stocks have been on a rising trend since Monday when it closed above the 22000-level with foreign institutional investors pouring money into stocks. On Tuesday, it closed lower by a marginal 0.27 points though.

 
 
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