Sensex pierces through 4,000-level

The 1,000-point plus rally in Sensex since the beginning of May 2003 has boosted the investors’ wealth— or market capitalisation—by Rs 289,300 crore to Rs 821,548 crore.

Though the market remained in the positive territory throughout the session, it displayed volatility, with the Sensex gyrating around the 4,000-level in the intra-day trades. Only 11 Sensex stocks ended in the positive zone, while 17 ended in the red, indicating uncertainty. ‘‘The market is now in a overheated position. The overall sentiment appeared to be cautious after an over 1,000-point surge in the Sensex in less than four months,’’ said broker Pawan Dharnidharka.

Analysts feel that a correction at the current level is good for the market. The undertone of the market, however, appeared to be optimistic following the improved outlook for the country’s economy. Positive statements from analysts and brokerage houses also jacked up the sentiment. ‘‘Analysts and stock advisors are active once again… reeling out ‘buy’ recommendations. Retail investors have entered the market late… well after many stocks had gone through the roof,’’ a market source said.

The market’s run-up to the 4,000 level saw many sectors jumping from low levels. Sectors like banking, pharma, auto, cement, oil & gas and steel have been shooting up one after another in the last three months.

Steel scrips, which rose sharply in the recent sessions, lost ground on Tuesday. State-run SAIL (down 15.74% to Rs 43.35) ended sharply lower -coming of from its multi-year high of Rs 61.40 touched in the early trades —on selling pressure after early gains.