Date:02/01/2004 URL: http://www.thehindubusinessline.com/2004/01/02/stories/2004010202680100.htm

Back Sensex gives solid start to new year

Our Bureau

Mumbai , Jan 1

THE New Year for stock market has begun on a high note, with the BSE Sensex closing within sight of the 6000 mark and the NSE Nifty inching closer to 2000.

The main driver for today's rise in stock prices was the reports of the 8.4 per cent GDP growth in the second quarter, brokers said.

The market opened firm in the morning and as the day progressed, further buying kept the market firm. At close, the BSE Sensex gained 76.51 points (1.31 per cent) to close at 5,915.47 and the NSE's S&P CNX Nifty closed at 1,912.25, up 32 points (1.71 per cent).

Buying interest was also seen in several mid-cap and small cap companies on expectation of strong corporate performance for the quarter ended December.

Brokers said the much-needed correction was overdue for some time, but the strong buying even at higher levels was keeping even some sellers away from the market. "There is concern that if investors sells the shares, they may not get the shares at lower levels and this is keeping the stock prices firm," said a dealer with a foreign broking firm.

Another dealer said with strong GDP growth in second quarter, the mood has turned more bullish and the expectation is that the third quarter GDP growth would also be same. In today's trading, the strong GDP growth brought interest in the FMCG stocks led by HLL, which gained 3.86 per cent at Rs 212.60 on the BSE. The BSE's FMCG Index gained 2.49 per cent. Several FIIs and institutional investors that have exited FMCG counter in 2003 are back on expectation of good performance of the sector.