Sensex up 75 pts to cross 6,000 again

The Sensex gained 225.35 points for the week, and from a recent low of 5,550.17 touched on February 3, it has recovered 461 points on sustained buying. The benchmark index has been on a roller-coaster ride since it struck a historic intra-day peak of 6,249.60 points on January 9, 2004. Said BSE dealer Pawan Dharnidharka, “While ITC and Hindustan Lever led the gains, pharma stocks traded higher on huge buying in the healthcare sector. Tech stocks also traded higher on fresh buying interest. Banking and PSU stocks traded lower, but ended off their lows on selective buying at the lower levels. Stock-specific action was seen on a number of mid-cap side counters.”

FIIs continued to remain buyers on the bourses. While they pulled out Rs 39 crore on Wednesday, their cumulative inflow in the first few days of February have reached Rs 1,280.50 crore. Cumulative inflow in calendar 2004 has reached Rs 5,433.20 crore so far (till February 11). Though the general elections in April-May bring uncertainty, the market does not expect any major reversal in the reforms process post-election.

The Central Statistical Organisation on Monday said the farm sector would drive the economic rebound in 2004 due to a bumper crop this year. The farm sector, which accounts for a quarter of GDP, is expected to grow 9.1% in 2004 after a drop of 5.2% in the previous year. GDP is expected to grow a scorching 8.1% in 2004, compared to a paltry 4% growth in 2003.

Latest economic data released on Thursday showed that industrial production grew 6.2% in December 2003, boosted largely by manufacturing sector growth on the back of the best monsoon in a decade, which stoked domestic demand. ITC (up 4.92% to Rs 1,060.50) gained further ground on sustained institutional buying interest.