Sensex Rises 50 Pts To End At 11-week High

Mumbai, July 30 | Updated: Jul 31 2004, 06:14am hrs
The market extended its winning streak for the second consecutive session on fresh buying in select frontline stocks by institutional investors. The Stock Exchange, Mumbais (BSE) 30-share Sensex rose by 49.87 points to settle the day at 5,170.32 points amid low volumes marking the highest level since the UPA government came to power in May 2004.

In the last two sessions, Sensex gained 100 points, which helped the market extend its gains for the five consecutive week. For the week, Sensex gained 96.98 points while for July 2004, the benchmark index gained 374.86 points.

The broader 50-share S&P CNX Nifty gained 13.60 points to end the day at 1,632.30. On Thursday, gainers outnumbered the losers. Of the total 1,745 stocks traded on BSE, 1,047 stocks advanced, while 607 stocks declined. 91 stocks remained unchanged.

Vaibhav Kapoor, group investment strategist, IL&FS, said: Apart from the concerns over rising crude oil prices and monsoon worries, impressive performance and attractive valuation are helping to lift the sentiment among players, who are acquiring selective frontline and mid-cap pivotals.

Nikhil Thacker, AVP, Asit C Mehta, said: Fresh buying support following the start of the new August 2004 future cycle and better-than-expected corporate performance helped the market to record gain on Friday. However, the Nifty August 2004 future was trading at a 9.35 points discount to the Nifty spot. The August 2004 futures ended the day at 1,622.95.

The Sensex opened with a positive gap of 14.47 points at 5,134.92 (incidentally its intra-day low) on fresh buying support following reports of revival of the monsoon, marginal drop in crude oil prices with the Russian firm starting its production. Thereafter, impressive corporate performance, especially in mid-cap companies, and static inflation rate at 6.52 per cent for the week ended July 17, 2004, lifted the market further, with Sensex touching an intra-day high of 5,200.85. However, selling in the last one hour, pulled the market lower by 30 points from its higher levels to settle the day at 5,170.32, up 49.87 points. Dealers said the selling in the eleventh hour was on profit-booking from market participants.

The selling in the last 15 minutes came on the back of huge volumes. Between 15:15 IST and 15:30 IST, the turnover recorded on the BSE rose by Rs 210 crore to Rs 2,001 crore from Rs 1,791 crore.