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8000 and More!

The BSE Sensex scaled yet another all-time high last week as it crossed 8000 points on Thursday.

The magic 8000-point-mark did not remain so elusive for the Sensex finally. The bellwether index tried to touch this number since a month, but it was only on Thursday that the index reached 8000 points. Neither high oil prices nor fears of higher interest rates have affected the bullish investor sentiment. FIIs continue to pump in money.

If mid-caps have been the flavour of this bull market so far, this week was for large-caps. Over the week, the Sensex gained 2 per cent to close at 8060 points. The Nifty went up by 1.64 per cent to close at 2455 points. The broad-based S&P CNX 500 gained 1.31 per cent and the mid-cap index CNX Midcap also gained 1.33 per cent.

On Monday, the Sensex opened on a positive note and closed 25 points higher. There was more action in mid-caps and small-caps as the madcap index gained 0.35 per cent. FMCG, banks and pharma stocks were in the limelight while tech stocks closed lower.

Tuesday too was a lacklustre day as the Sensex went up a marginal 21 points. Mid-caps rallied in the morning but could not sustain the gains to close flat. FMCG and banks gained. Wednesday was a public holiday on account of Ganesh Chaturthi.

Thursday was the day of fireworks. The mood was bullish since morning and the Sensex closed 106 points higher at 8052 points. Bank and technology stocks were in the forefront of the rally. On Friday, the momentum continued and the index stayed over 8000 points throughout the day.

In the sectoral indices, the BSE Bankex was the major gainer posting a 5.21 per cent rise. HDFC Bank and State Bank of India both gained over 6 per cent, while ICICI Bank was up 5.9 per cent. The BSE FMCG Index and the BSE PSU Index gained 2.32 per cent and 1.63 per cent. In FMCG, ITC gained 5.7 per cent, while Hindustan Lever fell 2 per cent. The PSU index was mainly pushed up by the public sector banks and ONGC which gained 1.5 per cent. BSE Metals Index gained 1.36 per cent. BSE Healthcare and BSE IT indexes were low key gaining 0.33 per cent and 0.27 per cent respectively. Infosys gained 1.4 per cent while TCS lost 2.6 per cent. In pharma, Cipla gained 5.2 per cent while Ranbaxy lost 3.1 per cent.

Among the major news of the week was the 7 per cent hike in petrol and diesel prices, which was long overdue. Global crude oil prices also started falling this week from the previous week's high. The combined daily average turnover on both exchanges fell 6 per cent to Rs 9,171 crore. Foreign institutional investors invested Rs 1,096 crore over the week. Domestic mutual funds bought shares worth Rs 28 crore on Monday and Tuesday.

The Sensex has crossed the 8000-point milestone due to strong liquidity, especially from FIIs. Though the market has shrugged off the bad news so far, will the stock market continue to remain immune to adverse news? Valuations in many stocks, especially mid-caps have got to unsustainable levels. Investors must be careful going forward.