Date:05/04/2006 URL: http://www.thehindu.com/2006/04/05/stories/2006040506461700.htm

Business

Sensex breaches 11700-mark

Mutual funds are the prime force behind the bull charge

MUMBAI: Hopes of an excellent fourth quarter earnings pushed the Bombay Stock Exchange benchmark index (Sensex) above the 11,700-mark for the first time on Tuesday, but profit selling erased part of the gains in volatile trading.

The 30-share index (Sensex) set a new intra-day peak of 11,710.69 while moving erratically in a 141-point range before closing at an all-time closing peak of 11,638.01, a net gain of 73.65 points.

The market remained in an upbeat mood on high hopes of impressive fourth quarter corporate results, flow of which will begin from next week. Earnings of major corporates are expected to be far better than market projections. Mutual funds, which pumped in a hefty Rs. 4,484 crore in March, were the prime force behind the bull charge.

Foreign institutional investors were believed to have slowed down their inflows to some extent after their massive investments in equity. The FIIs and mutual funds reported combined net investments of Rs. 11,316 crore in equity during March, the highest ever in a single month so far. Operators and retail investors, however, were engaged in profit selling at the day's higher levels. — PTI