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Bull charge continues as FIIs return Sensex gains 93 points

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Our Bureau

Mumbai, May 9

STOCK prices continued to move up for the sixth day in a row with the BSE Sensex gaining almost 93 points on revived buying interest both from domestic and foreign investors.

Technology stocks that were among the major gainers backed the upward movement in today's trading. Buying in mid-caps and small-caps also continued.

Recording its sixth straight upward movement, the BSE Sensex ended with a gain of 92.87 points (1.45 per cent) at 6,481.35. From a recent low of 6,140.97 touched during intra-day trades on May 2, the benchmark index has gained 240 points on sustained buying. The broader index NSE's S&P CNX Nifty index gained 23.25 points (1.18 per cent) to end at 2,000.75. Among the sectoral indices, BSE IT Sector index recorded the highest gain today moving up by 65.61 points (2.65 per cent), to end at 2,543.13.

The northward movement in stocks is mainly due to value buying in blue chips, an expected cut in the US interest rates and fresh banking sector reforms. Rising stock prices also prompted short-sellers to cover their positions lifting the market further higher.

The return of foreign institutional investors to the bourses also buoyed stocks. In the last two sessions, FIIs have turned net buyers. After pulling out Rs 67.60 crore on Wednesday (May 4), foreign funds turned net buyers , putting in Rs 123.30 crore on Thursday and Rs 127.30 crore on Friday. Players feel that there may be a further improvement in foreign fund inflows.

The breadth of the market was positive with advances outpacing declines 2.5:1. There were 1,637 gainers and 698 losers on BSE.

At close, the mood in the market was optimistic with expectation of the Sensex opening over the 6,500 levels tomorrow. Dealers did not rule out the possibility of the Sensex moving above the 6,500 levels if the current buoyant trend is sustained.

(This article was published in the Business Line print edition dated May 10, 2005)
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