Mumbai, 26 September The stock market continued its record-breaking run today with the BSE Sensex breaching the 17,000 mark for the first time in its fastest 1,000-point rally as foreign funds stepped up purchases of local shares.
The 30-share index, however, failed to hold on to early gains and closed at 16,921.39, still higher by 21.85 points from the previous close, as investors booked profit.
Profit-booking sparked as the Sensex crossed the 17,000-point level, covering the last 1,000 points in just six trading sessions. It touched an intra-day high of 17,073.87, and a low of 16,887.07 points.
In similar fashion, the National Stock Exchange’s index Nifty closed higher by 1.65 points at 4,940.50, after touching a record high of 4,980.85 and day’s low of 4,930.35 points.
A steep fall in Reliance Industries, the country’s biggest firm by market value, mainly drove the Sensex down. The RIL scrip, which has about 15% weightage in the Sensex, fell after reports that the company may put on hold investment plans to expand retail venture in UP.
Oil and gas index dropped by 160.57 points at 9,616.94, followed by realty index by 112.09 points at 8,973.38. Capital goods index lost 109.26 points at 14,654.35 and auto index ended lower by 35 points at 5,215.27.
Major support to the market came in from the bank index, which rose 172.82 points at 9,117.80. This was followed by IT index by 153.35 points at 4,501.97. PSU index gained 80.39 points at 8,055.51 and teck index rose 69.05 points at 3,720.46 points.
The benchmark Sensex crossed the 17,000-point mark on 26 September, taking its fastest 1,000-point stride in six trading sessions, on sustained FII inflows and funds buying.
The previous record of shortest 1,000-point journey was of 19 days when the Sensex soared from 11,000 to 12,000 in March 2006.
The 30-share Bombay Stock Exchange index gained 125.53 point to 17,025.07 in the first few minutes of trade from yesterday’s close of 16,899.54 points.
“This was a Reliance driven rally and another key factor propelling the market was foreign inflows,” a broker said.
Mukesh Ambani-controlled Reliance Industries touched an intra-day high of Rs2,425.90, telecom major Bharti Airtel soared to Rs973 while country’s leading private sector lender ICICI Bank witnessed a high of Rs1,004.
After the US Federal Reserve Board cut key interest rates, the rally witnessed in other Asian markets also boosted Indian stocks, marketmen said.
Sensex had hit 16,000-point on 19 September. The journey from 15,000 to 16,000 had taken 52 trading sessions.
Meanwhile, the journey from 14,000 to 15,000 level had taken more than 140 trading sessions, the longest 1,000-point march since the Sensex touched the five-figure level of 10,000 in February last year. The 15,000 level was reached on July 6.
The index took 143 days to travel from 14k to 15k, 26 days from 13k to 14k, 132 days from 12k to 13k, 19 days from 11k to 12k, 33 days for 10k to 11k, 48 days from 9k to 10k, 54 days from 8k to 9k, 55 days from 7k to 8k, and as many as 1,124 sessions for 6k to 7k.