Sensex at new high of 10,804

Supported by a recovery in other Asian markets and strong fund-buying, stocks today scaled a new peak. The BSE Sensex closed at 10,803.71, up 38.55 points, or 0.4 per cent, from its previous close. During the day, the index hit a new high of 10,884.48 points.

Similarly, for the first time ever, the National Stock Exchange's 50-share Nifty ended above the 3,200-point level, at 3,202.65. The index had hit an all-time high of 3,221.30 points earlier in the session.

The total volume today on both exchanges combined was over Rs 12,300 crore.

Dealers said stock market sentiments were positive with foreign funds continuing to buy across different sectors and market segments. "But profit-booking could not be ruled out, especially as we near the year-end. Rising valuations also make markets vulnerable to any bad news," an analyst added.

Although the major indices gained over 1 per cent till afternoon trade, selling pressure in sectors like cement, metal and automobile dragged down the market towards the close. Technology shares were among the best performers today. The CNX IT Index rose 2 per cent to settle at 4,162.60 points.

Wipro gained 2.3 per cent while Tata Consultancy Services gained nearly 4 per cent. Besides, oil behemoth ONGC was up 2 per cent.

FMCG stocks were also major gainers today with Colgate, Dabur, and Glaxo SmithKline Consumer gaining over 3 per cent each. Reliance Communication was up 6 per cent after the company announced consolidation of promoter holdings yesterday.

Foreign institutional investors have made net purchases of over $3 billion in the first three months of 2006. Flush with funds from new fund launches, domestic mutual funds have also been making heavy purchases.