Sensex vaults to new high

Index up 98 pts; 400 stocks hit circuit breaker.

The Bombay Stock Exchange (BSE) Sensex hit an all-time high today, propelled by strong institutional buying in blue chips. The finance minister's clarification on various tax measures proposed in the Budget lifted sentiment. Higher international oil prices, failed to impact the market, brokers said.

The 30-share index hit 6,794.22 in intra-day trade before closing at 6,784.72, up 97.83 points (1.46 per cent) from yesterday's close.

Indeed, the market capitalisation of stocks traded on the BSE has increased by Rs 55,145 crore since the presentation of the Budget on February 28. The aggregate market capitalisation increased from Rs 16,97,824 crore on February 25 to Rs 17,52,969 crore today.

Brokers said the Budget had soothed the pre-Budget jitters, paving the way for the Sensex to climb higher. But they added the Sensex had gained only 1.58 per cent in the current year (to date), whereas Pakistan's Karachi-100 had posted a blistering 31.93 per cent return.

Even Sri Lanka's All Shares Index gained 14.34 per cent and South Korea's Seoul Composite gained 12.73 per cent. Three other Asian indices, the Philippines' PSE Composite, Indonesia's Jakarta Composite and Singapore's Straits Times, have posted returns higher than the Sensex.

Automobile, oil, PSU, construction and IT counters were among the biggest gainers. In the Sensex basket, 28 scrips closed higher. The breadth of the market was also positive, with gainers outpacing losers 3:1.

The prices of as many as 400 stocks hit the upper circuit breaker today. Of this lot, 314 stocks hits a new 52-week high, and 141 stocks closed at their lifetime highs.

The traded volume was higher on the bourses because of a number of big block deals, brokers said.

The ONGC scrip flared on reports that the company had struck gas in the Krishna-Godavari basin, brokers said. A hike in global oil prices also helped, they added.

Cipla was the biggest gainer in the Sensex basket, rising 3.95 per cent to close at Rs 268.40, followed by ONGC, up 3.88 per cent at Rs 889.50. Wipro increased 3.87 per cent to close at Rs 697.45, Bajaj Auto gained 3.81 per cent to end at Rs 1,083.95 and Tata Motors was up 3.31 per cent at Rs 479.

The two losers in the Sensex basket included L&T, down 1.19 per cent at Rs 1,100.30, and Bharti Tele-Ventures, which fell 0.36 per cent to close at Rs 235.10.

Hitting a high note

Stocks surge:314 stocks hit 52-week high; 141 stocks closed at their life-time highs

Sector watch:Automobile, oil, PSU, construction and IT counters were among the biggest gainers

Market cap:Increased from Rs 16,97,824 crore on February 25 to Rs 17,52,969 crore on March 3