Sensex inches close to 11k peak

STOCK REPORT

A sharp rally in metal and IT stocks on Monday lifted the Bombay Stock Exchange's benchmark 30-share index Sensex by 81 points to end at a new closing peak of 10,941.11 points, just a few points away from the crucial 11,000 mark while investors turned selective, having their focus on key counters.

The Sensex started off with a bang at 10,903.25 and later moved in a range of 10,946.94 and 10,889.41 points before ending at an all-time closing high of 10,941.11 against Friday's close of 10,860.04, a net rise of 81.07 points or 0.75 per cent.

Crediting brisk activity in IT sector to Prime Minister Manmohan Singh's very definitive statement on full float of the Rupee, brokers said the steps on the currency's capital account convertibility could boost the country's foreign trade, especially exports from special economic zones.

Finance Minister P Chidambaram has said that the apex bank would announce steps in this regard in the next few days.

Foreign institutional investors (FIIs) were believed to be selective buyers in software sector. FIIs reported inflows of Rs 418.4 crore in equity besides sizeable purchases in the futures in the first three sessions of last week. Mutual funds also made net purchases of Rs 468.4 crore in the same period.

Shares of export-oriented firms hogged the spotlight in response to the statement. Heavyweights such as Infosys Tech, Wipro, Satyam Computer and TCS Ltd scored impressive gains on hectic buying.

Tata Steel, Grasim, Dr Reddy's Lab, SBI, Hero Honda, ACC, Cipla, Hindalco, ITC, Sterlite, Sesa Goa, SAIL, Jindal Steel and MTNL also recorded remarkable gains.

The volume of business, however, was low at Rs 3,969.96 crore. Blkashayp clocked the highest turnover of Rs 187.28 crore followed by Pratibha Ind (Rs 170.89 cr), Zee Telefil (Rs 138.52 cr), HLL (Rs 110.57 cr) and Indo-Tech (Rs 79.75 cr).