Date:01/07/2006 URL: http://www.thehindu.com/2006/07/01/stories/2006070102781800.htm

Business

Sensex vaults 447 points

MUMBAI: Enthused by a strong global trend, bulls took control of the stock markets. As a result, the Bombay Stock Exchange 30-share index (Sensex), climbed by 447 points to a month's high of 10609.25 on Friday while foreign funds showed signs of returning to India.

The Sensex began with a bang at 10316.12 and gradually moved upwards to the intra-day high of 10626.84 before closing at 10609.25 against 10162.16, a net rise of 447.09 points or 4.4 per cent. This is the third largest gain in absolute terms, the first two biggest being in the current month on June 9 and 15.

On the National Stock Exchange, the S&P CNX Nifty zoomed by 130.30 points or 4.35 per cent to 3128.20.

Indian bourses took a cue from Asian markets and rallied sharply in tandem amid reports that withdrawals from emerging markets slowed down with the prospect of faster economic growth attracting investors back to funds investing in India, market players said.

Global markets turned euphoric on Federal Reserve's hints of a pause in its tightening cycle along with the expected interest rate hike by 25 basis points to 5.25 per cent.

Friday's widespread rally was totally operator-driven with bulls building heavy positions on the first day of the derivatives July contract. Foreign institutional investors too were believed to enlarging positions in the Futures segment. In the U.S., the Dow Jones Industrial Average flared up by 217.24 points on Thursday, the biggest point gain since March 2003 and the Nasdaq Composite Index advanced by 62.54 points, its biggest percentage rise since March 2004. — PTI