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Bourses continue to march forward

Mumbai, Sept. 3: The doubting Thomases may be fearing an impending correction, but stock prices continue to chug along. The key indices today created new records on the back of sustained foreign fund inflows and optimism that the domestic economy was on a path to recovery.

Both the BSE Sensex and the 50-share Nifty of the National Stock Exchange today came off their historic peaks during intra-day trade, but still closed at fresh highs.

While the BSE Sensex breached the 27200-mark in intra-day trade, the Nifty touched a record high of 8141.90.

Analysts said the markets were unlikely to see any significant correction despite the huge run-up over the past few months as overseas inflows remained robust.

Provisional data from the stock exchanges showed that foreign investors, who have invested more than $13 billion so far this year, made net purchases worth Rs 1,289 crore today.

“There is nothing that could disturb the party at least immediately. The economy is on a positive note, the monsoon has improved. Moreover, there is no negative development from the global markets and this is keeping crude oil prices under check. Stock prices will continue to gain, though their pace may moderate,” a senior analyst with a foreign brokerage said.

While many brokerages forecast the Sensex to hit 29000 in the middle of next year, there are some who feel the index could even cross 30000 by that time.

The Sensex today opened in the green at 27128.06 and rose to a new intra-day high of 27225.85. However, profit booking trimmed the gains and the index settled at 27139.94, which is a new record.

The Nifty gained 31.55 points to close at a fresh peak of 8114.60.

The gains were led by IT stocks because of better US manufacturing and construction data. TCS, Infosys and Wipro rose between 2.45 per cent and 3.4 per cent.

The rupee closed higher by 19 paise at 60.49 against the dollar on the weakening of the US currency amid reports of Russia and Ukraine agreeing to a ceasefire.        

 
 
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