The Telegraph
Since 1st March, 1999
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Sensex doffs hat to 14000

Mumbai, Dec. 5: The sensex stormed past 14000 — its fifth milestone this year — as it continued to confound the pundits with its gravity-defying antics in a year that has shoved more notional money into investors’ wallets than ever before.

The 30-share benchmark indices, which opened at an all time high of 14028.47, fell back at close to 13937.65 as investors scooped up the gains — a rise of 63.32 points or 0.46 per cent.

The sensex took just 26 sessions to reach the 14000-mark from the 13000 level, which it had touched on October 30.

Sharp rise in the heavyweights Reliance Industries and Infosys again helped the surge in the indices. Rally in the metal shares based on firm advices from London Metal Exchange also propelled the market higher for the fifth trading session.

Reliance shares hit an intra-day peak and 52-week high of Rs 1,350 and closed at Rs 1,280, up by Rs 19.90 or 1.58 per cent on the Bombay Stock Exchange (BSE), as buying intensified in the stock on reports that the company was buying out Gujarat-based Adani Retail. The counter attracted 75 block deals in 11.23 crore shares on both the bourses.

Infosys’ scrip shot up to a trading high of Rs 2,248.35 and closed at Rs 2,239.05 on BSE, higher by Rs 33.60 or 1.52 per cent against yesterday’s close of Rs 2,205.45.

The Nifty also ended at yet another peak of 4015.75 from the previous close of 4001, a rise of 14.75 points or 0.37 per cent. It started a shade higher at 4001.25 and soon shot up to a new intra-day high of 4033.20.

The mood in the market continues to be bouyant, said market watchers. “The trend in the market appears to be positive and while the rise might be marked by intermittent corrections, the sensex is poised to scale even higher levels,” said a market analyst.

According to a market strategy report by JM Morgan Stanley, “The technical set-up continues to be encouraging that should lead to runaway strength in the month of December thereby possibly surpassing the 700-point gain during November and higher highs expected almost every week. With support at 13500 for sensex and 3950 for Nifty, any fall would be a buying opportunity as it is likely to be short-lived.”

The brokerage house has updated the short-term target to 14200 for sensex and 4100 for Nifty, while the medium term target for Sensex has been maintained at 15500. The market breadth remained positive with 1,318 gainers against 1,267 losers of the total 2,653 traded shares on BSE. The trading volume was, however, relatively low at Rs 4,779.34 crore against Rs 4,842.05 crore yesterday.

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