FII inflows aid surge

STOCKS REPORT

Rising for the third straight day on the back of across-the-board buying, the BSE Sensex closed at a 45-month high of 5577.96, up 0.66 percent (36.61 points) yesterday. The NSE S&P CNX Nifty Index moved up by 10.60 points to close at 1,789.15.

Trading in the positive territory for the entire session, the Sensex hit a high of 5590.45 and a low of 5543.98 points.

The breadth was positive with 985 companies advancing as compared to 515 declining. Stock-specific activity continued to be seen at a number of mid-cap side counters.

State-run banks, steel and cement stocks were in the limelight. Market players point out that expectations are high that India will have higher allocations in the new year.

Foreign institutional investor (FII) inflows have been at an all-time high this year, with more than $6 billion already pumped in so far. FII inflows were at Rs 294 crore on 18 December.

The Sensex has risen by more than 65 per cent in 2003 and is Asia's second best performer behind Thailand.

The markets reacted positively to news that India's forex reserves have touched a record $100-billion-mark.

Said a dealer from a local brokerage: "We may see heightened activity accompanied by some correction ahead of the expiry of the December series future contracts." December contracts expire on Wednesday as Thursday is a holiday on account of Christmas.

Heavyweights State Bank of India and Reliance Industries closed higher, contributing significantly to the gains of the Sensex.

State Bank of India closed at Rs 508.45, up by 3.89 per cent and RIL was up by 1.14 per cent at Rs 526.35. HPCL lost ground on selling pressure after it declared an interim dividend of six rupees per share, falling short of market expectations, according to sources.

Bhel was up 5.16 per cent at Rs 486.75 and Reliance Energy was up 3.41 per cent at Rs 491.50.