The Hindu Business Line : Sensex ends over 6,000-mark on sustained buying

AFTER several days of flirting with the sentimental 6,000-level, the Sensex closed strong on Wednesday at 6016.58. This is the first time since February 2004 that the benchmark index has closed above the 6000-level.

Analysts say the bourses are being buoyed by sustained buying by both domestic and foreign institutions. The fall in oil prices also added to the positive market sentiment.

Sensex opened strong and remained robustly in the 6000-plus range all day. It touched a high of 6,036.70. Overall the index gained 19.88 points today to close at 6,016.58, an appreciation of 0.33 per cent.

At NSE, the Nifty gained 12.45 points to close at 1597.25, up 0.79 per cent from Tuesday's close.

Banking stocks remained strong on Wednesday, with the Bankex posting 3.39 per cent gain during the day's trade. The hike in interest rates and expectations of increase in credit off-take has contributed to the expectations of better performance from banks.

UCO Bank and Union Bank scrips recorded 16.11 per cent and 12.19 per cent gains, respectively.

Steel stocks also had a good run at the bourses, with SAIL and Rashtriya Ispat Nigam Ltd announcing hike in prices because of the increased demand. Jindal Steel posted over two per cent gain on the BSE and Steel Pipes of India was the biggest gainer on the NSE, closing over 21 per cent from its opening levels.

Among the Nifty stocks, Tata Chemicals, Punjab National Bank, ICICI Bank and Sun Pharma posted smart gains.

Volumes also picked up today with the BSE reporting 21.72 crore shares aggregating Rs 1,781.19 crore traded. At NSE, 32.22 crore shares were traded for a value of Rs 4,064 crore.

Foreign institutional investors (FIIs) were net buyers to the tune of Rs 357.50 crore on Tuesday, as per data released by Securities and Exchange Board of India. This brings the total FII net purchases for the month to Rs 3,531 crore. In comparison, mutual funds have netted purchases of Rs 744.35 crore, so far this month.

Though Sensex has closed over 6000, market participants expect the bull run to continue. "Certain stocks are overheated but the valuation of the market continues to be attractive. Clever stock picking will now differentiate the winners from the losers," a NSE broker said.

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Sensex ends over 6,000-mark on sustained buying