The BSE sensitive index began from where it left on Tuesday to cross the 3300-mark, registering a gain of 114.73 points over the overnight close of 3227.13 to finish at 3341.86. The sensex has now gained 211.65 points over the past two trading days.
The sensex opened at 3233.71 and touched a high of 3344.35 during the session. With the sensex gaining sharply, the overall market capitaliation for 30 shares has gone up about 6.3 per cent.
The NSE-50 index opened at 924.20, reaching a high at 953.44 to close at 951.29. It gained 32.20 points. The total trading volumes witnessed at the exchange were worth Rs 1159.07 crore, invloving a net traded quantity of 599.71 lakh shares.
However, marketmen say that bulls have taken a speculative position, and that neither the foreign institutional investors nor the domestic institutions were aggressive buyers in the market.
Says a source at a leading institutional brokerage: "The buying was speculative and as the euphoria of the credit policy announcements wanes, the market will reverse its trend. It will witness a barrier at around 3400. The domestic as well as foreign institutions are adopting a wait-and-watch policy. There is also a redemption pressure on these institutions."
Birla Global Finance managing director S K Mitra said, "The upswing is a result of an expected correction after the downslide in previous weeks. The credit policy, which was better than expected, provided the right trigger for this."
All bank stocks, including SBI, Bank of Rajasthan, Oriental Bank of Commerce and Global Trust Bank, were in the limelight as operators went on a buying spree.
