Sensex crosses 7,100-mark

Said a dealer from Pranav Securities, “With the FII money pouring in, Nifty could repeat Sensex performance. The rally led by RIL has started moving to other large caps. Money is moving from midcaps to large caps and it is evident from the poor breadth of the market.”

Foreign institutional investors (FIIs) who brought in over $ 9 billion in 2004-05 are heavy buyers once again. FIIs injected a whopping $107.2 million on Monday and nearly $ 405 million (around Rs 1,800 crore) in five trading days.

Mid-cap and small-cap stocks which were zooming to dizzy heights have started falling. The BSE Mid-cap Index fell by 0.19 per cent to 3299.60.

The total turnover on the BSE and the NSE was pegged higher at Rs 4,149.16 crore and Rs 6,348.77 crore respectively. A number of block deals on both the bourses led to a high turnover on Wednesday. “The market sentiment is very bullish. The index may touch 7250 level before correction sets in,” said NSE dealer and investor Pradip Bhavnani.

Among the sectoral indices, BSE FMCG index outperformed the markets gaining 1.4%. The BSE Auto and BSE Oil & Gas indices also gained in excess of 1% each.too did make some gains as it moved up by 1.31%. On the other hand, BSE Bankex continued its downtrend for the second day shedding 0.20%.

The gainers pack among the Sensex pack were led by HDFC that gained 3.37% to close at Rs 871.75. Reliance Industries Ltd also gained 1.49% to close at a new life-time high of Rs 655.50. L&T, Cipla, TCS, Tata Steel, ITC and Maruti, Bajaj and Tata Motors all gained ground on Wednesday. HDFC Bank led the losers shedding 2.57% to close at Rs 585.55. Bhel (down 1.38% at Rs 853.55), Hindalco (down 0.96% at Rs 1180.80) and SBI (down 0.67% at Rs 661.05) also closed in the red. REL also lost ground to close at Rs 652.20. Ranbaxy and Infosys also lost ground.