Sensex & Nifty climb new peaks

Written by Agencies | Mumbai, September 29: | Updated: Sep 29 2007, 16:54pm hrs
Stocks: The stock markets remained bullish and climbed new peaks on day-to-day basis in the week under review amid indications of a sharp downward correction ahead as the valuations looked stretched.

In the last nine days (including five days of the week) the bull-run was mind-boggling. The Bombay Stock Exchange (BSE) barometer completed the fastest 1,000-point journey in just six days and gained 1,787 points or 11.5 per cent during the strongest rally beginning September 18.

The 30-share BSE index ended the week at 17,291.10 against previous weekend's close of 16,564.23, a rise of 726.87 points or 4.39 per cent in the week ended September 29.

Similarly, the broader S&P CNX Nifty of National Stock Exchange (NSE) crossed the 5,000-points level and closed the week at a new closing peak of 5,021.35, a jump of 183.80 points or 3.8 per cent over previous weekend's close of 4,837.55.

The unprecedented surge was credited to a dramatic rise in FII inflows after the US Federal Reserve lowered interest rates on September 18.

Foreign Institutional Investors (FIIs) poured in more than USD 3 billion (Rs 13,600 crore) since September 19.

This week's inflows stood at about USD 2 billion (Rs 8,500 crore) including the provisional number of Friday.

Analysts expect a downward correction after a phenomenal rise in share prices in a short period, while investors seemed optimistic about another rate cut by the Fed next month in the light of release of data showing sluggish housing sales and consumer confidence in the US.