Sensex scales to new peak

The bull bandwagon moved further forward on Wednesday, taking the benchmark Sensex to a new closing peak. Ignoring the Ayodhya fallout, blue chips and mid-cap stocks staged a rebound as expectations of a normal monsoon in July, a surge in US and European markets and a strong showing by select Indian ADRs on Tuesday boosted the market sentiment.

The 30-share BSE Sensex leaped up 67.35 points or 0.93 per cent to settle at an all time closing high of 7,287.60. The S&P CNX Nifty marched up 17.45 points or 0.79 per cent to settle at 2,228.20.

M-cap also soared to a new peak of Rs 18,48,515 crore. The BSE Small Cap Index put on 77.90 points or 1.7 per cent to 4,565.87. BSE Mid Cap Index advanced 64.47 points or 1.8 per cent to 3,477.10.

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“There is no negative news at the moment. Some of the stocks are overpriced, but still buying support is continuing,” said an analyst with a broking firm.

“The market is flush with funds. New investors are also coming in. Investors need to be cautious,” said BSE dealer Pawan Dharnidharka.