Indian bourses at all-time high

Written by Markets Bureau | Agencies | Mumbai, Sep 28 | Updated: Sep 29 2007, 06:03am hrs
The Indian markets recorded gains for the eight consecutive sessions on Friday amidst the rising optimism that Reserve Bank of India (RBI) may cut cash reserve ratio (CRR) for banks. The optimism helped both the benchmark indices, 30-share Sensex of the Bombay Stock Exchange (BSE) and 50-share S&P CNX Nifty of the National Stock Exchange (NSE) to close at record high, while Asian markets posted a mixed show.

The Sensex ended at a record closing high of 17,291.10, up 140.54 points, or 0.8%, from Thursday. Intraday, it touched a lifetime high of 17361.47. Nifty, on the other hand, ended at a record closing high of 5,021.35, up 20.80 points, or 0.4%. Intraday, it touched a lifetime high of 5,055.80. The Sensex ended the week with gains of 727 points while Nifty added 184 points during the week.

Dealers said the rally has been liquidity-driven, and markets were volatile at a higher level as players preferred to book profit. However, the underlying sentiment remained positive after inflation data for the week up to September 15 stood at 3.23% against 3.32% a week ago, they added. There are rumours in the market about a possible CRR cut, and in some quarters talk of a bank rate cut also, which generated interest in bank shares, said Nimish Mehta, head of trading, Kaycee Financial Services.

Metal and banking sector stocks were in the limelight on the back of heavy buying by foreign institutional investors (FIIs). The BSE Metal and Bankex were the biggest gainers with a gain of 440 points and 240 points respectively. With rupee once again gaining strength against US greenback, the IT sector stocks were beaten and as a result both BSE IT and Teck index closed in red. The market breadth was even as among 2,838 stocks traded 1,377 (48.54%) advanced while 1,397 (49.22%) ended in red with 64 stocks remaining unchanged.