Despite the rise in the main indices, the market breadth has remained negative for more than a week now.

Our Bureau

Mumbai, Sept. 28

THE indices touched a new high on Wednesday with the Bombay Stock Exchange (BSE) Sensex closing above 8,600 as short sellers came to cover their positions. Firm global markets and a drop in crude prices lifted market sentiment.

The BSE Sensex rose by 81 points (0.94 per cent) to close at 8,606 and the National Stock Exchange's (NSE) S&P CNX Nifty rose 23 points (0.90 per cent) to close at 2,598.

Short covering in September derivatives contracts, which are due to expire on Thursday, may have influenced the direction of the markets, said a dealer. The markets are likely to remain volatile, said a note by Motilal Oswal Securities.

Index heavyweight stocks such as Reliance Industries, ONGC, Hindustan Lever, L&T, Hero Honda, BHEL and TCS led the rise in Sensex and Nifty.

With today's rise, the BSE Sensex has risen more than 380 points in the last three trading sessions after the government clarified that there was no scam in the market and the investigation was mainly in penny stocks.

Market breadth negative: Despite the rise in the main indices, the market breadth has remained negative. In Wednesday's trading, 1,655 stocks fell on the BSE compared to 905 that rose.

(This article was published in the Business Line print edition dated September 29, 2005)
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