Speculators seem to be against pulling back after hoisting the Sensex above the 8,000-level. With bulls retaining their grip on the market, Sensex surged to a new lifetime high above 8,100.The 30-share BSE Sensex jumped 78.41 points or 0.97 per cent to an all-time closing high of 8,138.42. The S&P CNX Nifty gained 28.70 points or 1.1 per cent to a record peak of 2,484.15.Steady to firm global markets and robust FII inflows — which are about to touch $8 billion in 2005 — cheered the sentiment. On September 8, the day the Sensex soared 106 points to cross the 8,000 level, FIIs bought shares worth a massive Rs 543.30 crore.Index heavyweight Reliance, ONGC, PSU banks, two-wheeler firms, AV Birla group firms and cellular services major Bharti Tele-Ventures (BTL) were at the forefront of today’s market surge.The market has been on a roll, with robust inflow from FIIs boosting the bourses. On the other hand, manipulation in penny stocks continued unabated. In the past nine trading sessions, the Sensex has risen 503.99 points or 6.6 per cent from a recent low of 7,634.43 on August 29, 2005.The latest surge has been quite sharp and swift — it took just 55 days for the Sensex to move to the 8,000 level after it had first hit the 7,000 level on June 20, 2005.The market has risen sharply in the past four months on the back of robust FII inflow, and boosted by strong corporate earnings. From a low of 6,195.15 on May 2, 2005, the Sensex has risen a staggering 1,943.27 points or 31.3% to the current 8,138.42.The cumulative FII inflow in equities in calendar 2005 (till September 8, 2005) has reached Rs 34,634.70 crore ($7.93 billion). In the whole of 2004, the inflow aggregated Rs 38,965.10 crore ($8.5 billion). “Over the last two years, the market has rocketed on solid FII inflow. What had initially started as value buying (due to attractive valuation) transformed into a bull market on solid corporate earnings growth,” said a BSE dealer.Manipulation in penny stocks: PatilMUMBAI: Despite the current boom at the stock market, UTI AMC Chairman R.H. Patil today warned that “manipulation” is going on in trading of penny stocks and asked the investors to be careful about it. “My real worry about the capital market is not large companies but the penny-stock companies. Some manipulation is going on in that market,” Patil said.High levels of profitability in a short period of time, on small investment, attracts investors to penny stocks, Patil said adding, “everybody rushes in and scamsters take away their money.” — ENS
