Rally in IT stocks lifts Sensex by 66 points

MUMBAI, DEC. 13. The benchmark rallied smartly, gaining about 66 points at close, to reflect an upsurge in all heavyweight stocks on the Bombay Stock Exchange today following fresh bull support coupled with increased purchases by foreign funds.

The BSE sensitive index opened firm at 4235.56 and later gradually moved upwards to the day's high of 4298.63 before closing at 4284.98 against yesterday's close of 4219.48, scoring an impressive net rise of 65.50 points or 1.55 per cent. The BSE- 100 index improved by 34.57 points to 2259.46 from 2224.89.

Bulls had slowly been tightening their grip on the market, well supported by various positive factors such as picking up FII activity with foreign institutional investors reportedly making purchases in software stocks in anticipation of excellent working results by IT companies in the third quarter.

Speculators were also active in a bid to accumulate stocks ahead of announcements of fund allocations by FIIs for the next year to enable them to book profits at later stage, market sources said.

A sharp rally in Nasdaq futures came as a shot in arm for enthused operators who, along with domestic institutions, were busy chasing cement stocks on news that the government had given go ahead for starting work on Rs. 30,300 crore road construction to link four metros as part of the ambitious Rs. 58,000 crore national highway development project.

- PTI

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