Sensex jumps 98 points, hits 5,800 level

From a recent low of 5,131.54 touched on December 8, 2003, Sensex gained 665.79 points, or nearly 13%, so far. For the year 2003, the index has gained 2,420.05 points, or 71.65%, making it one of the best performing indices in the world. “The market has risen by 13 per cent in three weeks. This rise is too fast. It’s time for correction,” said BSE broker Pawan Dharnidharka.

Tech stocks rose further on hopes of improved quarterly results, continuing foreign fund inflows and expectations of higher economic growth. Heavyweights SBI, ITC, HLL and Reliance Industries contributed significantly to the gains of the Sensex. Pharma and banking sector stocks were also in the limelight. “Retail investors need to be careful… or they will burn their fingers badly,” said stock dealer R. A. Podar, adding, “stocks cannot go up and up. It has to fall and correct at one stage.”

The market displayed ‘strength’ throughout the session on the back of sustained buying from institutions —local as well as foreign —and retail investors. The mood on the market appeared extremely bullish amid hopes that inflows from foreign funds would continue to pour in.

The rally was led by foreign funds who have invested over $ 7.4 billion in Indian markets in 2003. They put in Rs 223.40 crore on Wednesday, compared to the inflow of Rs 307.50 crore on Tuesday. On a cumulative basis, FIIs invested Rs 5,387 crore so far this month.

ICICI Bank (up 5.74% to Rs 301.90) crossed the Rs 300-mark amid rumours that the bank may issue bonus shares. From a recent low of Rs 146 touched on August 6, the ICICI Bank stock has risen 106.78% on sustained buying interest. HDFC Bank (up 4.06% to Rs 372.85) also firmed up. Tata Steel rose from Rs 420 to a new 52-week high of Rs 443 on sustained buying on the back of a firm trend in the domestic as well as international steel prices. Eventually, the stock ended at Rs 440.55, up 3.78% over its previous close. Tech pivotals Satyam Computer (up 3.45% to Rs 370.60), Wipro (up 2.33% to Rs 1,753.50) and Infosys Tech (up 1.82% to Rs 5,489.10) firmed up on sustained buying interest. Tech stocks will start announcing quarterly results from the second week of January. Players expect techs to register improved performances on the back of stability in billing rates.

Heavyweights like State Bank of India (up 2.81% to Rs 537.15), ITC (up 1.81% to Rs 993.15), Hindustan Lever (up 1.60% to Rs 205.85) and Reliance Industries (up 1.25% to Rs 536.75) also contributed significantly to the gains of the Sensex.