Sensex cracks 14,000 ahead of Q3 results

Anticipation of higher allocation for Indian markets by foreign funds in 2007 and expectations of robust third-quarter earnings by India Inc made the Bombay Stock Exchange's (BSE's) benchmark Sensex close above the 14k mark for the first time on Wednesday.

Led by infotech stocks, the Sensex closed at 14,014.92, up 72.68 points, or 0.52 per cent, while the BSE's IT index was the best performer among sectoral indices with a gain of 1.52 per cent. The broadbased S&P CNX Nifty was up 0.42 per cent to 4,024, registering its highest level so far.

"We expect the market to reach 15,500-16,000 within the next 12 months. The country will continue to attract foreign funds, in line with the other emerging markets," brokerage firm Sharekhan said in a client note.

"Domestic players expect higher allocation by foreign funds for India. This is leading to further buying. But, we feel that the market, especially the large cap segment, is fully priced," said Kalpesh Parekh, head of the institutional segment at ASK Raymond James.

"It will be stock-specific movement from here on. The small and mid-cap segments could also give better returns," he said.

The BSE mid-cap (up 1.04 per cent) and small-cap (up 1.09 per cent) indices outperformed the Sensex on Wednesday, signalling strong buying in key mid- and small-cap stocks.

Not just the Indian markets, those such as Australia, Hong Kong and Singapore too are trading at all-time highs. However, the fast-moving consumer goods and the oil & natural gas indices bucked the trend and closed in negative territory.

Bajaj Auto (up 3.79 per cent to Rs 2,842.65), Ranbaxy (up 3.48 per cent to Rs 412.25), Tata Consultancy Services (up 2.62 per cent to Rs 1,281.30), Cipla (up 2.50 per cent to Rs 257.85) and Infosys (up 1.77 per cent to Rs 2,312.60) were the top gainers on the Sensex.

Foreign funds continued to pump more funds into Indian markets, buying $73 million worth of equities yesterday. They bought close to $8 billion in 2006. Mutual funds, on the other hand, began the year on a cautious note, being net sellers to the tune of Rs 7 crore yesterday.

The market breadth was positive on Wednesday, with 1,695 stocks closing higher and 945 stocks ending in negative territory.

On the bourses

Market cap at Rs 3,700,452 crore, up by Rs 23,000 crore

Sensex at all-time high of 14,014.92, up 72.68 points

Nifty at 4,024.05, up 16.65 points

Gainers/losers at 1,695:945

110 stocks at all-time high on the BSE

485 stocks hit upper circuit

FIIs net buyers at Rs 168 crore (provisional)