Sensex adds another 124 pts, crosses 4,700 mark

Reflecting the bullish trend, Sensex opened at 4656 points, which happened to be the day’s low and later shot up to touch day’s high of 4746.00 points, before closing at 4728.81 points, netting a gain of 123.97 points (2.69 per cent) from the previous close of 4604.84 points. The BSE-100 index at the BSE also advanced by 52.13 points to 2333.87 points as against the previous close of 2281.74 points.

The trend was similar at the National Stock Exchange (NSE), where S&P CNX Nifty ended higher by 33.30 points to 1463.65 points as against the previous close of 1430.35 points.

According to marketmen, today’s rally was led by Satyam Computer and followed by Visual Software, Software Solutions, Himachal Futuristic Communications, Global Tele, Infosys Tech, Colour Chem, Sun Pharma, NIIT, Crest Communication, Sterlite and MTNL. Several old economy shares also rose on heavy buying. Stocks of Reliance, HPCL, IPCL, Hindustan Lever and other pharma shares also moved up.

The rally on Thursday has brought back the feel good factor into the market. And the fact that Thursday’s rally was broad-based with even stocks from the cyclical and the banking sectors participating, market players feel that there is much steam left in the rally. However, analysts expect a correction which will make the market healthy in the slightly longer term.

According to dealers, the good thing about Thursday’s market was that the buying interests were not limited to the new economy stocks only as old economy stocks too participated in the rally. The immediate target for the Sensex is 4850 which could be breached on Friday itself. “With all-round buying coming in on Thursday, we are looking at an immediate Sensex level of 4850, i.e. another 100-120 points jump from the current level,” said a dealer.

However, according to another analyst, after five consecutive days of gains, Friday – the last day of trading in the current settlement on the BSE – looks to be a good day to book profit. “Undertone is no doubt bullish, but a reaction of around 200-250 points from the current level will make the market healthier,” he said, adding, “in case of a reaction at the current level, we can expect a bull rally in the medium term.” The participation of economy stock in Thursday’s rally has infused fresh hopes among market players.

Volatility was again witnessed in software counters which was at its peak in the second half of trading on Thursday. Despite high volatility, counters like HFCL, Global Tele, Satyam Comp and Digital Computers recorded handsome gains.