Just 3 sessions after 16K, Sensex knocks on 17,000

The benchmark Sensex is racing to the 17,000 level. The index, which hit 16,000 only last week closed just 155 points below the 17,000 ...

The benchmark Sensex is racing to the 17,000 level. The index, which hit 16,000 only last week Wednesday, closed just 155 points below the 17,000 level after it soared by 282 points on all-round buying by index pivotals, especially Reliance group stocks, attracting concern from a section of marketmen. The Sensex closed 282 points 1.70 per cent higher to 16,845.83, an all-time closing high. It had opened on an upbeat note at 16,697.89, tracking firm global cues, and kept on advancing throughout the day on steady buying demand for index pivotals.

The S038;P CNX Nifty was up 94.65 points 1.96 per cent to 4,932.20, an all-time closing high. 8220;The market sentiment was boosted by liquidity, foreign inflows and expectations of good corporate results. But the market is rising too fast,8221; said a BSE dealer.

From a recent low of 13,989.11 on August 21, 2007, the Sensex has surged 2856.72 points 20.42 per cent in just 24 trading days to the current 16,845.83. It has gained over 1,340 points in the last six sessions. If the Sensex hits 17,000 in the next few days, it would be its fastest ever 1,000-point jump.

A major factor driving the market is foreign inflows. FIIs have invested 1.22 billion since last Wednesday, when the US Federal Reserve Board cut key American interest rates. The rally in other Asian markets, too, boosted Indian stocks. Today, Hong Kong8217;s Hang Seng up 2.52 per cent, Shanghai Composite up 0.56 per cent and Singapore8217;s Straits Times up 2.73 per cent advanced impressively. However, marketmen watched with disbelief when some of the stocks went through the roof. Reliance Energy REL surged 8.1 per cent. India8217;s largest private sector entity by market capitalisation and oil refiner, Reliance Industries Ltd RIL rose 3.63 per cent. It hit an all time high of Rs 2,375 in intra-day trade. RIL had last week announced that it has struck oil in deepwater block KG-D4 in the Krishna Basin. IFCI surged 19.32 per cent.

The ADAG group8217;s Reliance Natural Resources Ltd RNRL soared by 22 per cent. 8220;We8217;ve not seen this kind of rise in the recent past. I8217;m not sure whether fundamentals factors are driving these stocks,8221; said BSE dealer Pawan Dharnidharka.

Despite the solid rally in market, the market breadth was negative on the BSE with 1,454 shares declining compared to 1,302 that advanced. 8220;The way we have been rising is pointing towards some kind of euphoria, which is always bad for the common investor,8221; said Gajendra Nagpal, director with Unicon Financial in New Delhi. 8220;I would be rather happy if the market takes a beating and cools off before looking up again.8221; BULLS ALL THE WAY

8226; Sensex has risen 1,340 points in last six sessions

8226; FIIs have invested 1.2 bn since US Fed cut rates last Wednesday

8226; Market has risen 20 per cent since August 21

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8226; Though index shot up on Monday, majority of shares fell