On the back of quarterly results and FII inflows, the Sensex has crossed 13,000. But the ride is going to be very choppy from now on
04-Nov-2006 •Research Desk
The Sensex surged to an all time high of 13039.30 on Monday to finally close at 13024. The index heavy weights like RIL, Bharti Airtel, HDFC Bank and M&M led the Nifty to hit an all time high of 3776.05 before closing at 3769.
The BSE Bank and Oil & Gas index were the major gainers and BSE Consumer Durable and the Metal index were the major losers. HPCL, Dr Reddy's Laboratories and Reliance Communication gained after declaration of Q2 results. The total turnover in BSE and NSE was Rs 12,139.43 crore.
Tuesday turned out to be a volatile day in the market. The Sensex hit a new high of 13075.85 but profit booking and selling pressure in index heavy weights like HDFC Bank, Bharti Airtel, Infosys and Tata Steel dragged it to an intra-day low of 12907.94. Finally, the Sensex closed at 12961 and the Nifty at 3744.
Technology stocks were among the major losers as profit booking dragged down Infosys, Wipro, Polaris, Mphasis BFL and I-Flex. Metal stocks, consumer durable stocks and banking stocks were also down. Despite closing lower, turnover was higher at Rs 13,178.36 crore.
Telecom stocks, oil and gas stocks and RIL lifted the markets despite volatility. The Sensex closed above the 13k mark at 13033 (up 71 points) and Nifty closed at 3767 (up 23 points). Turnover dropped to Rs 11,867.69 crore.
On Thursday, ONGC and RIL led the rally causing the Sensex to touch an intra-day high of 13137.74. Finally, the Sensex closed at 13091 (up 58 points) and Nifty at 3791 (up 24 points). The BSE Oil & Gas, PSU and Consumer Durable indices were among the major gainers while BSE Technology, Metal and FMCG were among the major losers.
The week ended with the Sensex closing at 13130.79 (up 39.67 points) and the Nifty at 3805 (up 14 points). Turnover dropped from Rs 11,358.6 crore (Thursday) to Rs 11, 380.81 crore (Friday).
Monday through Thursday, mutual funds were net buyers.
Turnover is much less than it was at the start of the year and it is mainly a few select frontline shares that are driving up the key indices. It is the strong quarterly results, lower crude oil prices and FII inflows that have been the main drivers of the current rally.