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| FII buying lifts market to 2009 high |
| BS Reporter / Mumbai Dec 25, 2009, 00:09 IST |
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Extending gains for the third straight day, the Sensex rose 129.50 points to touch a new 2009-high of 17,360.61, backed by strong liquidity and hopes of firm economic and corporate growth.
Markets opened with a positive gap on firm Asian cues. However, the Nifty slipped into the red, and remained subdued for the greater part of the trading day, as investors started booking profits.
However, fresh fund buying saw the Nifty rebounding smartly to 5,197.90. The index finally ended at a 2009-closing high of 5,178.40, up 33.80 points.
The foreign institutional investors (FIIs) flocked back by pouring in a record Rs 80,000 crore in domestic equities so far in 2009.
“A significant buying by FIIs, both in short-covering and fresh buying, led to domestic investors putting in more money even in the last two days. The sharp recovery suggests that bulls are much stronger than the negative sentiments in the market right now,” said D D Sharma, VP Research (Retail), Anand Rathi Financial Services.
The BSE auto index advanced 1.5 per cent to 7,356.81. The metal index was up 1.42 per cent at 17,333.73.
Auto stocks ruled the roost. Tata Motors surged 4.5 per cent to Rs 780. Mahindra & Mahindra and Hero Honda advanced 2 per cent each to Rs 1,061 and Rs 1,735, respectively.
Metal stocks shone in trades for the third straight day. Hindalco jumped 2.97 per cent to Rs 157.75. Tata Steel added 2.06 per cent and Sterlite moved up 1.43 per cent.
Among other gainers, ITI soared 11.2 per cent as the government planned to revive the company. Nagarjuna Construction Company jumped 3.88 per cent on the cabinet’s decision to spend $20 billion a year on road construction.
Jet Airways added 1.94 per cent on fund raising plans through share sale. Glenmark Pharma moved up as subsidiary company received USFDA nod for a new drug.
However, Jaiprakash Associates dropped 1.87 per cent to Rs 144.20. Bharti Airtel slipped 1.59 per cent.
The market breadth was positive. Out of 2,989 stocks traded, 1,598 advanced, while 1,253 declined.
“The market is at a high point right now, and it closed with a good volume. If the Nifty crosses 5,180 on Tuesday, it can go up to 5,400-5,500 level,” added Sharma.
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