Financial Daily from THE HINDU group of publications
Tuesday, Dec 30, 2003
Financial Daily from THE HINDU group of publications Tuesday, Dec 30, 2003 |
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Stock Markets Markets - Stock Markets Bulls on the rampage; Sensex gains 98 points Our Bureau
Mumbai , Dec. 29 THE bulls are charging ahead. Even the usual year-end holiday mood is absent in the stock market. While a section of the market is expecting profit-booking for some time now, active buying from institutional investors is keeping bears at bay. Continuing its upward trend for the sixth day in a row, the BSE's 30-share sensitive index (Sensex) on Monday gained 98 points (1.72 per cent) to close at 5797.33. The NSE's S&P CNX Nifty too, gained 37 points (2.01 per cent) to close at 1,874.05, the new high for the index. The BSE Sensex is just 350 points short of its all-time high of 6,150, touched on February 14, 2000. The bullish mood in the market was also seen from the advance-decline ratio on the BSE, with 1,613 stock advancing and 627 stocks declining; 67 remained unchanged. Heavy purchases were seen in the mid- and small-cap stocks. This was seen from the rise of the BSE 100 by 1.86 per cent, the BSE 200 by 1.80 per cent and the BSE 500 by 1.86 per cent. Heavy purchases were seen in banking sector stocks, with the BSE's Bankex rising by 3.72 per cent, the highest gain in Monday's trading among the sectoral indices. Brokers said the current rally now is more liquidity driven rather than fundamentals. "More funds are chasing less stocks and this is leading to a rise in the stock prices," said a dealer with a domestic broking firm. FIIs have already invested Rs 5,450 crore in the equity (total Rs 6,000 crore) this month. This is contrary to the trend seen in past years and the market expects more funds inflows from them in the days to come. The Sensex has gained almost 800 points this month and several stockbrokers are anticipating some correction. "Until a correction is seen, it will be risky for the stock market," said a broker. However, the brokers said over the next two trading sessions (of this year), a correction looks unlikely as most of the institutional investors would like to keep their Net Asset Value of their portfolio high and would not like stock prices to fall.
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