Short cover, sustained FII buying hoist Sensex to a new high

The BSE benchmark Sensex rose to fresh lifetime closing high of 22,214.37 points on sustained FII buying in banking and oil & gas shares amid hopes that the economy would be on recovery path soon and Reserve Bank of India would hold interest rates steady.

The 30-share Sensex touched all-time high of 22,307.74 intra-day. This is the fourth day in succession that the key index has risen to record high levels intra-day.

The BSE barometer moved for most of the day in the positive terrain before settling at 22,214.37, up 119.07 points or 0.54 per cent from its previous close.

The NSE Nifty rose by 40.35 points or 0.61 per cent to end at new peak of 6,641.75. It recorded historical intra-trade high of 6,673.95.

Foreign institutional investors (FIIs) bought shares worth Rs 1,004.52 crore on Wednesday, as per provisional data with stock exchanges.

Brokers also ascribed the rise to hectic short-covering on the last day of March contract of Futures and Options.

Some participants, however, warned that the much-needed correction is likely to come after elections.

Bourses have been on a rising spree since Monday when it closed above the 22,000-level for the first time with foreign institutional investors (FII) pouring in money into stocks.
On Tuesday, it closed lower by a marginal 0.27 points though.

Consistent pumping of money by FIIS had lifted the BSE benchmark index Sensex and broader NSE Nifty to their lifetime closing high of 22,095.30 and 6,601.40 points respectively yesterday. 

Among S&P BSE sectoral indices, consumer durables rose by 1.46 per cent, oil&gas 1.28 per cent, realty 1.06 per cent, power 0.92 per cent, bankex 0.74 per cent and consumer goods 0.69 per cent.

The market breadth turned positive as 1,673 stocks ended in the green, 1,127 stocks finished in the red while 161 ruled steady.

The total market turnover dropped to Rs 2,285.81 crore from Rs 4,210.86 crore on Wednesday. Of 30 Sensex stocks, 20 ended higher, nine finished lower while Axis Bank ruled steady.

Asian markets ended mixed amid concerns that US President Barack Obama might step up pressure on Russia.

Key benchmark indices in Taiwan, Hong Kong, Japan firmed up by 0.48-1.01 per cent, while indices in China and Hong Kong eased by 0.24-0.83 per cent.

European markets were also trading narrowly mixed on concerns that the crisis in Ukraine may escalate.

Key indices in UK and France eased by 0.05-0.34 per cent, while Germany’s DAX was quoted slightly higher by 0.08 per cent.