Sensex makes history, cracks 6,000
Shares now worth Rs 13,12,800 crore
| The total market capitalisation of the bourses stands at an all-time high of Rs 13,12,800 crore, 20.2 per cent higher than Rs 10,91,982 crore on February 11, 2000. The Sensex has climbed from 5,000 to 6,000 in just 25 trading days. |
| What is more, the price-earnings ratio today was 19.85, against 12.72 on April 25, 2003, when the Sensex hit a six-month low. |
| Yesterday's rally was spread across sectors as investors booked ringside seats ahead of the results season, which starts on January 9 with Infosys Technologies announcing its third quarter results. The undertone was, of course, set by expectations of higher portfolio allocations this year. |
| The National Stock Exchange S&P CNX Nifty Index gained 1.77 per cent (33.80 points) to end at a new high of 1,946.05. The market breath was positive with 1,163 stocks advancing against 737 declines. |
| The consensus in the market is that the bull run will continue in 2004 on the back of strong economic and corporate fundamentals. "Macro fundamentals are good and a lot of money has come into the market in December. This is driving the bull run. Corporate results during the second week of this month are expected to be strong," P Krishnamurthy, vice-chairman, JM Morgan Stanley, told Business Standard. |
| Firm commodity prices in sectors like cement, steel and petrochemicals have boosted market sentiment, resulting in hectic activity in these stocks. Technology stocks are in the limelight as quarterly results of technology companies will start pouring in from the second week of this month. |
| "It will not be surprising if the Sensex reaches 6,500, given that corporate earnings are expected to be good," Ajay Bhatia, senior vice-president, Enam Securities, said. |
| Oil and Natural Gas Corporation, the biggest company by market value, sizzled on the bourses today, with its scrip price surging 11.97 per cent to Rs 919.05 at close. |
| The Reliance Industries scrip was up 2.8 per cent at Rs 585.70 and Hindustan Petroleum 2.32 per cent at Rs 461.20 on hopes that the government's stalled disinvestment programme will be revived soon. |
| The markets surged in the last hour of the day's trading on news that the government had finalised a vote-of-account in late January. |
| Heavyweight ITC was up 3.08 per cent to Rs 1,022.65, Hindustan Lever 1.39 per cent to Rs 215.55 and State Bank of India 0.38 per cent to Rs 567.25. |
| Mahanagar Telephone Nigam Ltd surged 4.23 per cent to Rs 148.95 on fund-based buying, while Hindalco rallied 5.68 per cent to Rs 1,480.45. Cement stocks rose on talks of a hike in cement prices. ACC surged 2.84 per cent to Rs 266 and Gujarat Ambuja Cements 1.33 per cent to Rs 315.60. |