Sensex soars 3.5 in 5 sessions

Within seven days of hitting the 11,000 mark, the superfast Sensex on Thursday crossed the 11,300 level, indicating the commanding position of bulls in the ongoing rally.

Within seven days of hitting the 11,000 mark, the superfast Sensex on Thursday crossed the 11,300 level, indicating the commanding position of bulls in the ongoing rally.

The sharp spurt today was attributed to short covering in derivatives segment with the Sensex rising by 123.56 points 1.10 per cent to a lifetime closing high of 11,307.04. 8216;8216;A massive short squeeze on the last day of expiry helped prop the market further. This was over and above the continuing strong fund flows. We expect the upward trend to stay intact for the coming week,8217;8217; said Rahul Rege, senior vice president Sharekhan.

With this spurt in the last two weeks, India has become the third largest gainer among global markets behind Pakistan and Russia over the last one year. The Sensex jumped 387 points 3.57 per cent in the past 5 trading sessions from 10,840.59 on March 23, 2006.

Investors wealth 8212; market capitalisation 8212; shot up by Rs 40,500 crore in a day to Rs 29.84 lakh crore. Market cap has risen by a whopping Rs 5,24,000 crore since January 2 this year. 8216;8216;The Bull run is not restricted to India alone. It8217;s happening in all emerging markets. India8217;s good fundamentals are attracting foreign investors,8217;8217; said BSE dealer Pawan Dharnidharka.

On Thursday, the barometer index opened with an upward gap at 11,241.78 on the back of strong US markets and the latest data showing a pickup in buying by FIIs and local mutual funds.

Foreign investors are prime drivers of the bull run. FIIs bought shares worth a net Rs 371.70 crore on Tuesday. On March 27, they pumped Rs 550.20 crore into the Indian equity market. Mutual funds bought shares worth a net Rs 317.80 crore on March 28, 2006.

US stocks staged a broad rebound on Wednesday, as tech shares rallied on optimism about economic growth and business spending, driving the Nasdaq to a five-year high.