Nifty crosses 5,000-mark for first time

Markets Bureau | Updated: Sep 28 2007, 05:19am hrs
If Wednesday was the day of the 30-share Sensex of the Bombay Stock Exchange (BSE) to achieve the milestone of 17K, Thursday belonged to the broader S&P CNX Nifty of the National Stock Exchange (NSE), which crossed the psychological 5K- mark. The broader Nifty closed the day at 5,000.55 points gaining 60.05 points, or 1.22%, after touching an intra-day high of 5,016.40 points.

On the other hand, the benchmark Sensex surged further to touch an all-time high of 17,188.40 points before settling the day above the 17K level at 17,150.56 points, with a gain of 229.17 points or 1.35%.

Market experts opine that short covering in the derivatives' September series on its expiry, coupled with positive global market cues, buoyed sentiments on the domestic equity bourses. Anil Advani, head of research, SBICAP Securities, said, "The current rally is mainly led by foreign institutional investors (FIIs) and that too on the back of select few Index heavy weights. Market would continue to get directed by the FII fund flows. If there is a slowdown in FII investment, we can expect a correction in the market."

According to Sebi data, FIIs were net buyers to the tune of Rs 1,004 crore. They have bought equities worth Rs 13,700 crore ($3.36 billion) in the month of September.

On Thursday the rally was mainly led by stocks belonging to metal and IT counters. BSE Metal Index rose by 3.19%, or 416.96 points, at 13,502.60 points while BSE IT Index rose by 141.46 points, or 3.14%, to close at 4,643.43 points.

IT stocks rose mainly on account of depreciating rupee following some of the leading public sector banks buying dollars in the Forex market on behalf of Reserve Bank of India (RBI) to prevent further appreciation of rupee, said a dealer with a domestic brokerage house.

Infosys Technologies surged by Rs 87.45, or 4.79%, at Rs 1,911.75, TCS rose by Rs 20.70, or 1.99%, at Rs 1,061.70 while Satyam rose by Rs 11.05, or 2.56%, to close at Rs 442.35.

Other notable gainers included Reliance Energy, which rose by Rs 91.05, or 8.87%, at Rs 1,117.25 while Tata Steel rose by Rs 43.70, or 5.82%, to end the day at Rs 794.60.