Sensex gains 93 points, targets 6,500

Good days are back again on Dalal Street. Blue chips were on the rampage on Monday, lifting the market further after last week’s rise. ...

Good days are back again on Dalal Street. Blue chips were on the rampage on Monday, lifting the market further after last week’s rise. Technology and automobile stocks led the bull rally with pharma stocks recovering smartly from the lower levels after early weakness.

Showing its sixth straight rise, the 30-share BSE Sensitive index (Sensex) eventually ended with a gain of 92.87 points, or 1.45 per cent, at 6,481.35. From a recent low of 6,140.97 touched in intra-day trades on May 2, it has gained 240 points on sustained buying.

The broader 50-share NSE S&P CNX Nifty index gained 23.25 points, or 1.18 per cent, to end at 2,000.75.

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The BSE Sensex gained 233.94 points, or 3.80 per cent, last week, rising in all five sessions, as value buying emerged in blue chips after a recent fall. An expected cut in the US rates and banking sector reforms helped the market regain its losses. Rising stock prices also prompted short-sellers to cover their positions, lifting the market further higher.

Said a BSE dealer, “The market has been rising steadily since the last one week, especially after the Federal Reserve last week reassured that it would probably keep raising rates at a measured pace.”

Adding to the bullish phase, foreign funds also started buying stocks. After pulling out Rs 67.60 crore from on last Wednesday, foreign funds turned net buyers in Indian equities, putting in Rs 123.30 crore.