Sensex closing in on 5,800

Rising for the third straight day on strong fund and institutional buying, the Bombay Stock Exchange Sensex today closed almost 100 points higher than Friday's close at 5,797.33, just a shade short of 5,800. This is the Sensex's highest close since February 24, 2000.

The Sensex is now less than 400 points away from its life-time high of 6,150.69 points, recorded on February 14, 2000.

The National Stock Exchange S&P CNX Nifty climbed 2.01 per cent (37 points) to close at yet another all-time high of 1,874.05.

Market sources said today's buying was in anticipation of good quarterly results, and as a result, funds and institutions were hectic buyers in old economy counters.

Share prices of cement, steel and automobile companies and banks were up sharply on hopes of strong quarterly results. The rally was broad-based, with advances outnumbering declines 1,081:454.

The mood in the market appeared bullish amid hopes that foreign fund inflows would continue to remain strong in the new year, with some sections talking of foreign institutional investor (FII) inflows topping $10 billion next year.

FIIs have invested a net $7.5 billion in the Indian equity market this year. K Anant Rao, dealer with a domestic brokerage, said, "The markets are bullish, with the undertone continuing to be strong." He added that the next target was 6,150, hit on February 14, 2000, during the Ketan Parekh-driven boom.

The State Bank of India scrip was up 2.81 per cent at Rs 537.15, ITC 1.81 per cent at Rs 993.15, Hindustan Lever 1.60 per cent at Rs 205.85 and Reliance Industries 1.25 per cent at Rs 536.75.

Technology stocks were in the limelight, with Satyam Computer up 3.45 per cent at Rs 370.60, Wipro 2.33 per cent at Rs 1,753.50 and Infosys Technologies 1.82 per cent at Rs 5,489.10.