Bull run continues; Sensex up by another 60 pts

MUMBAI, May 14: The stock markets across the country remained in the bull orbit as foreign investors continued their buying spree on Frid...

MUMBAI, May 14: The stock markets across the country remained in the bull orbit as foreign investors continued their buying spree on Friday. The fancied Sensex (Bombay Stock Exchange Sensitive index) jumped by another 60 points to touch the 52-week high of 4075.47 in euphoric buying conditions.

On Friday, Sensex opened higher at 4041.21 and crossed the 4100-mark level to an intra-day high of 4102.03 on aggressive buying by FIIs but later reduced the gains on profit-booking and closed at 4075.47, registering a net gain of 60.79 from yesterday’s close of 4014.68.

Foreign funds were reported to have made purchases in the shares of MTNL, BHEL, Tisco, SBI, RIL, L&T, HPCL and BPCL while they sold select pharma shares on profit-taking. Reports that the finance ministry had chalked out a new round of reforms for mega power projects like zero custom duty on import of equipment led most of the power sector scrips to zoom to dizzy heights.

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Refinery and fertiliser shares also found buyers and some of these scripshit the upper band of the circuit filter. Local institutions like LIC, GIC and UTI, on the other hand, sold the shares. In the last 12 months, the Pokharan-II tests, sanctions, economic recession and political instability at the Centre impeded the bull fervour on the bourses. However, with FIIs now pouring money and early signs of an economic recovery, marketmen feel this is just the beginning of a sustained rise in the market.

It was in 1992, thanks to the Big Bull, that the Sensex breached the 4000 mark for the first time. Now this is the ninth time in the history of Sensex that it has gone past the 4000 level. In 1997, Sensex managed to close above the psychological barrier for the maximum period – 67 trading sessions – spread over four different rallies.

Said an FII fund manager, “In the short term the index should touch 4,300 points and within next 3 months it should touch 4,650 points. Reliance will prove to be the torch bearer of the market as it has entered into the bull grip. While technicallythe market is poised for another bull run led by Reliance, the FII inflows are another reason for this thinking”.