Sensex continues its year-end party

Sustained foreign fund inflows and hopes of strong quarterly results helped the stock market post record gains on Monday. Metal, capital goods and oil scrips were among the biggest gainers while some automobile companies slipped.

The Sensex hit a high of 6,568.57 in intra-day trades before closing at 6,563.48, up 50.45 points (0.77 per cent) from yesterday's close. Volumes were higher than yesterday in the cash segment: the BSE reported a turnover of Rs 2,313.26 crore and the National Stock Exchange reported a turnover of Rs 4,870.30 crore.

The breadth of the market was positive with gainers outpacing losers 2:1. In the Bombay Stock Exchange's Sensex basket, 23 out of the 30 scrips closed higher.

Narayan S A, managing director at Kotak Securities, said, "Foreign fund inflows continue to be strong and valuations do not look stretched hence we can expect a further upside."

Kashyap Pujara, vice-president (portfolio management) with Mumbai brokerage Sushil Finance said: "The market looks strong as can be seen from the high premium of the January futures contract over the spot prices. A good amount of roll-over has also taken place already, highlighting the positive sentiment."

The Reliance Industries scrip gained 2.18 per cent to close at Rs 528.10, and the other group Sensex scrip, Reliance Energy, was up 0.14 per cent to Rs 526.75 on value buying.

Foreign funds were net buyers of Indian shares worth Rs 29.60 crore on Monday and have bought shares net worth Rs 5,256.50 crore in December so far, data released by the Securities and Exchange Board of India show.

Metal stocks, especially steel counters, were in the limelight on hopes of a fresh hike in steel prices in January. Tata Steel was the biggest gainer in the Sensex basket, rising 4.52 per cent to close at Rs 390.95; followed by HPCL, up 4.19 per cent to Rs 403.90; Hindalco gained 3.49 per cent to Rs 1367.90; HDFC Bank was up 2.74 per cent to Rs 517.90; and BHEL gained 2.46 per cent to Rs 754.95.

ONGC was the biggest loser in the Sensex basket, falling 2.74 per cent to close at Rs 824.40, followed by Bajaj Auto, down 0.83 per cent to Rs 1120.80, Hindustan Lever fell 0.76 per cent to Rs 143.65, HDFC was down 0.39 per cent to Rs 756.45 and Gujarat Ambuja Cements fell 0.33 per cent to Rs 397.75.