The bombay stock exchange’s (BSE) benchmark 30-share sensitive index (Sensex) hit a ninth successive record high and posted a 10th straight rise today — its longest winning streak in two years — powered by Reliance Energy, but wariness of a correction grew. The market rose 0.22 per cent today, takings its gains over the last 10 days to 11.8 per cent. It has hit a record high every day since the US Federal Reserve cut interest rates on September 18.“The momentum is building up mainly because of foreign fund inflows and expectations of good corporate results,” said UTI Securities head of research Nikhil Thacker. Reliance Energy rose 11.9 per cent to a record close of Rs 1,349.40 after it said on Sunday that it planned an initial public offering (IPO) of a subsidiary, which media reports say will raise $2.8 billion. The stock has risen 31.5 per cent over the last three days and 160 per cent so far this year.The Sensex ended up 37.52 points at 17,328.62, its ninth record close in as many sessions, with 15 stocks gaining, after rising a lifetime high of 17,425.34 during trade. The stock markets will be closed tomorrow on account of Gandhi Jayanti. “The fear factor is also increasing with the way the market is moving up. It could see a very sharp correction now,” said Finquest Securities chief executive Sejal Doshi.The index’s 14-day relative strength index (RSI) rose further above 93 points today, the ninth day in a row it has been above the 70-point level that is considered an overbought signal. Top lender State Bank of India (SBI) fell 2.9 per cent to Rs 1,893.50, after having risen nearly 8 per cent last week on speculation that the central bank may cut interest rates.In the broader market, gainers outpaced losers 1,608 to 1,116 on volume of 526 million shares. The 50-share NSE index ended 0.95 per cent higher at a record close of 5,068.95, after hitting an all-time high of 5,089.30 during trade. The stocks that moved during the day included state-run power producer NTPC Ltd, which rose 6.5 per cent to a record close of Rs 206 on hopes of a higher valuation after Reliance Energy’s proposed initial public offering of its subsidiary. Jewellery firm Gitanjali Gems ended 3.8 per cent higher at Rs 331.15, having risen to a life high of Rs 354.40 during trade, after it said its board would meet on October 6 to consider raising equity capital through various means.Kavveri Telecom Products rose 4.3 per cent to 159.15 rupees after it acquired the technology, intellectual property rights (IPRs) and patents on cellular infrastructure base station antenna from US-based PCTEL. Mirc Electronics gained 13 per cent to Rs 24.80 on media reports that two of its three founders had started talks with a group led by Videocon and Future Capital to sell a substantial stake.The top three scrips by volume were Ispat Industries (34 million shares), Reliance Natural Resources Ltd (RNRL) (30 million shares) and Tata Teleservices, Maharashtra, Ltd (20 million shares).
