Sensex crosses yet another milestone after volatile trade

India’s benchmark index, which has hardly paused for breath after recovering from a swift correction last week, on Thursday, bolted past a new high of 8,700 points in volatile trade on the BSE.

The 30-share Sensex once again hit an intra day high of 8,722.17, mainly driven by hectic short covering in key heavy weighted counters like RIL, Infosys Tech, L&T, SBI and Satyam Computer.

The Sensex witnessed choppy trade in a range of 8,722.17 and 8,588.47 due to squaring up activity on the last sessions in derivatives contract before ending the day at 8,650.17 from Wednesday’s close of 8,606.03, a net rise of 44.14 points or 0.51 per cent.

Small cap stocks, however, were at the receiving end and the gravity of pressure in the segment could be gauged by a fall of 111 points in its index. Hedge funds and operators covered their short positions in some index heavyweights, but late profit booking pared gains towards close, brokers said.

Strong liquidity and robust fundamentals visualize an extended price rally, notwithstanding an inevitable technical correction for the good health of the market, brokers added.

The market is considered to be fully priced, but some key stocks provide good investment opportunities with strong hopes of excellent second quarter earnings to be announced after October 10.

The BSE Small-Cap Index dropped by 111.05 points or 1.88 per cent to 5806.31 from the last close of 5917.36.

The broad-based BSE-100 Index firmed up further by 11.46 points to 4566.99 from a previous close of 4555.53. The BSE-200 Index and the Dollex-200 were quoted modestly up at 1098.23 and 415.65 at close compared to a previous close of 1096.32 and 414.08 respectively.

The BSE-500 Index edged up by 1.64 points to 3525.83 from Wednesday’s close of 3524.19 and the Dollex-30 ended higher at 1614.71 from 1602.89.

Ajit Stanley, Student Representative, Colossus

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