Sensex hits 11K, falls

The Sensex has moved from the 10,000-mark to the 11,000-mark in just 29 trading sesions. The broader Samp;P CNX Nifty of the National Stock Exchange NSE ended the day at 3,262.30, down 3.35 points.

The barometer index oscillated 153 points for the day with most of the volatility coming in the last hour of trade. Earlier today, the Sensex opened on a firm note and it hit the 11,000 mark within minutes after the commencement of trading session. The sharp fall in oil price provided initial trigger. The US April crude oil plunged 3.7 per cent or 2.35, to settle at 60.42 a barrel on the New York Mercantile Exchange on Monday due to ample US inventories.

Also the latest data showing strong inflow from FIIs and mutual funds on Friday boosted the market sentiment in early trade that took Sensex to the 11,000 level. FIIs bought shares worth Rs 474.90 crore on Friday March 17, 2006 while domestic mutual funds bought shares worth Rs 460.50 crore.

The government steps on rupee convertibility also boosted the market. Greater convertibility would give companies more access to foreign debt markets and cut delays in foreign exchange transactions. It would also enhance foreign investors8217; access to India8217;s banks and debt market.

8216;8216;There is money coming in from foreign and domestic funds, but we are seeing signs of caution because valuations are stretched,8217;8217; said an institutional dealer at a brokerage. 8216;8216;Investors are playing it safe by focusing on the large-caps, and we8217;re likely to see a ranged market till Q4 earnings,8217;8217; he said. Companies will begin reporting fiscal fourth-quarter earnings from the second week of April.

Among the Sensex stocks, 15 moved higher while 15 declined. Bhel jumped 4.8 per cent to Rs 2,211 and it was the biggest gainer among Sensex constituents.