The Telegraph
Since 1st March, 1999
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Stock rally intensifies

Mumbai, Aug. 20: Stocks surged to a 30-month high today, a day after the sensex zoomed past the 4000-barrier and heralded a roaring comeback by charging bulls.

The rally that took the sensex past the peak on Tuesday intensified this afternoon, propelling the key market barometer above 4050 points on the back of brisk buying in the shares of technology and drug firms.

The sensex scaled an intra-day high at 4066.03 before ending at 4056.60 compared with Tuesday’s finish of 4006.91 — an increase of 49.69 points, or 1.24 per cent.

The leap in technology shares was accompanied by a sell-off in shares of steel companies and other old-economy scrips. The sentiment in favour of new-economy stocks was boosted by the second straight day of gains in the Nasdaq Composite Index, which closed at a 16-month high on Tuesday. At home, these shares had been pounded in recent weeks by concerns emanating from the rising rupee and pressure on margins.

Infosys Technologies shot up 5.3 per cent to end at Rs 3673.10 after its ADR finished 2 per cent higher in the US. Satyam Computers, Wipro and HCL Tech also vaulted.

Away from the binge, some operators warned an overheated market would cool soon. “A correction is in the offing. But one should not forget that the fundamentals for the market is still strong,” a broker said.

Steel shares continued to be dumped for the second day with SAIL plunging around 12 per cent to Rs 38.50. Tisco also finished in the red at Rs 243.15, a loss of Rs 7.75 over its previous close.

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