The Hindu Business Line : Sensex zooms past 6,550

STOCK prices continued to rule firm on Monday on the back of good December quarter results, strong FII buying and the Government's decision to allow pension funds to invest in stock market and mutual funds.

In Monday's trading, stocks rose almost across the board. The encouraging quarterly results also aided some buying.

The benchmark index, BSE Sensex, recorded its fourth straight increase and ended with a gain of 136.84 points (2.13 per cent) to close at 6,555.94. From a recent low of 6,106.43 on January 24, the benchmark index has gained 449.51 points, or 7.36 per cent.

NSE's S & P CNX Nifty index on Monday gained 49.30 points (2.45 per cent) to end at 2,057.60.

Brokers said strong inflow from FIIs, which started from Thursday, has also led to sharp rise in stock prices. In the last two trading sessions, FIIs have been net buyers to the tune of over Rs 825 crore in the equity market.

``There will be wild swings and more than a 100-point movement on the Sensex will be the order of the day. Trading opportunities will be available in plenty and we are on course to tackle the life-time highs in a couple of weeks," said Mr Arun Kejriwal, Investment Strategist at Angel Broking.

Volumes on the BSE and the NSE also were higher compared to Friday's close. On the NSE, a total of 42.71 crore shares were traded and on the BSE, 25.88 crore shares were traded. The advance-decline ratio was also positive indicating stock price of more companies gained compared to those declined.

At close, the overall mood of the market was positive. But some brokers said selling should be seen during this week if the stock prices have to rise further in the long-term.

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