The bull rally is not showing any signs of slowing down. The benchmark Sensex and the NSE S&P CNX Nifty index ended at their closing highs on Tuesday as buying resumed in blue chips after Monday’s fall from the higher levels.After touching a new high of 6,568.57 in final trades, the BSE Sensex ended with a solid gain of 50.45 points at 6,563.48, its best closing ever. The broader 50-share NSE S&P CNX Nifty index ended with a modest gain of 8.75 points at 2,071.35, again its best ending ever. The rally was led by metal stocks, notably steel stocks like Tata Steel, on expectations that a fresh hike in steel prices will be effected in January and on hopes of bumper quarterly results. “Sensex will cross the 6,600 level soon,” said a dealer.Hopes of strong quarterly results, sustained foreign fund inflows and a fresh fall in the international oil prices were the factors that boosted the market on Tuesday. A sharp fall in international oil prices on Monday too gave the market its thrust. Dealers say while there could be a slowdown in FII inflows soon, foreign fund inflows would rise in 2005 with India’s weightage rising in the Morgan Stanley Capital International Index. Besides, there are hopes of strong corporate results, as indicated from the high advance tax payments made by top firms.
