Bull charge: Sensex powers to new peak

Foreign funds bet on strong earnings growth of India Inc.

The BSE Sensex closed at its all time high of 8853.21 today even as the foreign funds are betting on stronger earnings growth of Indian companies than their peers in developed markets. The 50 share S&P CNX Nifty closed at an all-time high level of 2664.30, up 29.30 points for the day.

At today's level, the 30-share Sensex was trading at the price earnings multiple of 17.33. On October 4, when it crossed an all-time high level of 8,800, the Sensex stocks were available at P/E of 18.15.

Foreign funds have bought Indian shares worth $780 million in November, taking the total to more than $8.48 billion in 2005, after pulling out more than $866 million in October. The mutual funds have put in Rs 363 crore so far in November after buying shares worth Rs 2,900 crore in October.

With today's rise, the index has gained 318.24 points in the past three sessions. The latest surge in the index has come on the back of strong institutional buying "" both foreign institutional investors as well as domestic mutual funds.

"The confidence in Indian markets has gone up after the recent correction," said Sindhu Sameer, head of sales at the Karvy Stock Broking. According to him, the decline in oil prices, and the generally good sentiment in Asian markets are also propping up sentiments.

Analysts noted that the recovery in market sentiments is part of a rebound in global emerging markets.

"With the US Fed indication that there is unlikely to be any major hike in the US rates in the future, FIIs are looking for alternative investment avenues in emerging markets," said Jitendra Gupta of the Networth Stock Broking.

"The market sentiments are likely to be bullish and we expect the Sensex to touch the 9,000 mark by January," he added.

The market breadth was positive with 26 out of the 30 Sensex stocks ending in the positive territory. Overall, advances outnumbered declines 1344 - 1154. The turnover at the BSE stood at Rs 2759 crore, up from Thursday's 2598 crore.

Rs 2.3 trillion gain in November

Automobiles, tech, oil & gas, capital goods and consumer durable goods index at all time high

Rs 3,487 crore FII inflow in November; Mutual funds pump in Rs 364 crore

1,311 stocks gain, 1,161 stocks lose

8 Sensex stocks at all time high, 69 stocks at 52-week high