Sensex shoots up 60 points

Bulls roared back on Dalal Street on Thursday despite soaring oil prices. The strong response to the IPO of power firm NTPC cheered the secondary market pulling the benchmark Sensex up by 59.91 points or 1.05 per cent to 5,773.66 8212; its highest close in more than five months since April 23, 2004.

The Sensex had come sharply off the higher levels in mid-afternoon trade to the 5,748-level, but buying support at the lower levels at the fag end of trading boosted the market once again. The S038;P CNX Nifty surged 20.80 points or 1.1 per cent to 1,815.70. The massive response to the IPO of NTPC on the first day of the issue boosted market sentiment in the face of rising oil prices. It may be recalled that the TCS IPO, in July-August 2004, had received an overwhelming response from all sections of the market. The current rally on the bourses has essentially been a liquidity driven rally. FIIs have stepped up buying on the bourses in recent weeks. In four trading sessions between Sepember 30, 2004 and October 5, 2004, FII inflows hovered between Rs 176.60 crore to Rs 416 crore. Expectations of solid quarterly results from India Inc have aided the surge. The Q2 results season kickstarts from October 12 when IT bellweather Infosys Technologies announces its results.