The Hindu Business Line : Sensex crosses 6,500 intra-day, gains 56 points

STOCK prices continued to rule firm, with the BSE Sensex crossing the 6,500 levels for the first time on Friday. Interest in Reliance Industries Ltd (RIL) stock further buoyed market sentiment.

At close, the Sensex gained 56.21 points to close at an all-time high of 6,498.06, after touching a high of 6,507.94. On the NSE, the S&P CNX Nifty closed 17.55 points higher at 2,062.70.

After a firm opening, the market displayed strength for the entire day on the back of strong foreign fund inflows, which have hit the record high of $8.25 billion this year so far. Stabilising global crude oil prices and hopes of strong corporate results for the quarter ending December 31, 2004 also spurred buying interest. Market players anticipate good corporate results as most of the leading companies have paid higher advance tax payment for the third quarter.

The star performer of the day was RIL, which gained 3.47 per cent to close at Rs 523.60. Brokers said the RIL stock led to sharp gain in the major indices. The rise in the stock price of RIL was also attributed to short covering in the shares.

Several players had sold RIL stock in anticipation that the stock price will further fall. Since it did not happen they started buying again in order to minimised their losses.

According to brokers, the scheduled board meeting of RIL on Monday to consider buyback of shares led to active buying. The view of the market players is that the buyback price would be higher than the current ruling market price.

There was active buying in select sector stocks also. "There was buying in sugar, steel, fertiliser and cement companies' shares. Some buying was also seen in technology stocks," said Mr Alok Behl, Head-Institutional Sales, Fortis Securities.

Another index stock to witness active buying was Tata Steel, which gained 3.7 per cent at Rs 359.

The breadth of the market was also positive with advances more than declines. But major action was seen in large-cap stocks.

"Broad market trend should remain firm for next week due to short covering and RIL announcement on buyback of shares if it turns out to be market friendly," said Mr Behl.

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