Date:12/12/2007 URL: http://www.thehindu.com/2007/12/12/stories/2007121262332000.htm

Business

Sensex scales new peak at 20291

Special Correspondent

Hopes of U.S. rate cut trigger rally

MUMBAI: The stock market touched a life-time high on Tuesday as the benchmark Sensex closed above the 20000-mark on expectation of a rate cut by the U.S. Federal Reserve. The NSE Nifty also closed above the 6000-mark for the first time.

The Bombay Stock Exchange 30-share sensitive index (Sensex) was up by 360.21 points or 1.81 per cent at 20290.89 against the previous close of 19930.68 and the 50-share Nifty was up by 136.65 points or 2.29 per cent at 6097.25 against 5960.60.

Expecting a rate cut of 25 basis points by the U.S. Fed, other Asian markets too surged ahead.

The BSE reported a turnover of Rs. 8,227.36 crore against Rs. 7,420.72 crore previously. Bharati Airtel and HDFC Bank were the major gainers and Infosys and DLF were the major losers.

Foreign institutional investors’ (FIIs) inflow is Rs. 3,823.80 crore till December 10 and it totalled Rs. 69,731.10 crore for the calendar year 2007 till December 10.

Banking, realty, auto and metal stocks edged higher. Except BSE IT all the other sectoral indices gained. The BSE Midcap index closed at 9117.44, up 0.8 per cent, and the Smallcap index at 11530.92, up 1.2 per cent. The BSE Realty index was up by over three per cent. The Oil and Gas index closed up nearly two per cent and the BSE Metal index by two per cent. The BSE Bankex improved by 2.5 per cent, Capital Goods index by one per cent at 20299.75, Auto index by 1.6 per cent at 5765.34, FMCG index by 0.4 per cent at 2169.62, while the BSE IT index closed flat at 4432.45.

All Asian markets ended the day up by an average of 0.25 per cent to 2.5 per cent,

Top heavyweight and petro-chem giant, Reliance Industries was in demand on reports that the company has struck a deal to explore uranium in Australia through its subsidiary RIL (Australia).