Sensex at 4-month high, hits 5,600 mark

Market cap of actively traded scrips increases by 28% in the last four months.

Metal, infotech, pharmaceutical and power scrips were in the limelight today lifting the Bombay Stock Exchange (BSE) Sensex above the 5600 levels.

The BSE hit an intra-day high of 5611.60 before closing at 5605.93, 1.08 per cent (60.11 points) over yesterday's close. As a consequence, the market capitalisation of actively traded scrips on the BSE has increased by 28 per cent (Rs 269,457 crore) in the last four months to Rs 1,233,718 crore today.

The BSE Metal index was the biggest gainer today, rising 2.28 per cent, followed by the infotech index, up 1.80 per cent and the Bankex index was up 1.67 per cent.

The BSE FMCG index was the biggest loser, down 0.77 per cent. Among Sensex scrips, ICICI Bank was the biggest gainer rising 3.57 per cent to Rs 288.75, followed by Cipla, up 3.45 per cent to Rs 284.90. The Wipro scrip was up 3.17 per cent to Rs 599.10, Hindalco gained 2.71 per cent to Rs 1284.15 and Tata Power was up 2.67 per cent to Rs 313.20.

Zee Telefilms was the biggest loser in the Sensex basket, down 3.48 per cent to Rs 148.45, followed by Grasim, down 1.30 per cent to Rs 1154.45 and HLL fell to 1.20 per cent to Rs 123.80.

Brokers said that the undertone was upbeat on the back of sustained foreign fund inflows. Market players said that investors were optimistic and many were of the opinion that inflation had peaked and were looking ahead to strong corporate earnings for the July-September quarter.

Easing international oil prices had also contributed to the recent gains of the market, they added. Expectations of strong corporate earnings for the quarter ended September was driving investors to the market, dealers said.

Blue-chips witnessed good buying interest, with 22 of the 30 scrips in the Sensex basket closing higher. The broader markets were also positive; gainers outpaced losers 3:2 on the BSE.

Cash market turnover was higher than on Monday. The BSE reported a turnover of Rs 1967.39 crore and the National Stock Exchange reported a turnover of Rs 4425.35 crore.

Foreign institutional investors were net buyers of Indian shares worth Rs 220.10 crore on Monday while domestic mutual funds were net sellers to the tune of Rs 71 crore.