BUSINESS

Sensex ends flat after peaking to 6386

MUMBAI, DEC. 6. The 30-share Bombay Stock Exchange sensitive index today once again soared to new historic high of 6386.29 for the second consecutive session, before heavy profit taking drove it down to end flat despite sustained foreign institutional investment inflows and stability in global oil prices.

Banking stocks hogged the limelight on reports that the Reserve Bank of India might change the norms to allow banks with higher capital to lend more to brokers, directly invest in shares and finance IPO investments.

The BSE benchmark 30-share index, which hit new intra-day record high of 6386.29, minutes after a strong start at 6351.04, later met with resistance and dropped substantially to end the day at 6322.50 against last Friday's close of 6322.76.

Foreign institutional investors reportedly were heavy buyers in index-based counters while operators and local funds continued their selling in a bid to take profits at the higher levels.

Software majors including Infosys Technologies, Wipro and Satyam Computer witnessed selling pressure in view of appreciating rupee. The top heavyweight RIL also suffered a sharp setback on selling triggered by reports indicating persistent differences between the Ambani brothers.

Key counters including HPCL, Tata Steel, HLL, Grasim, Dr. Reddy's, BHEL, ACC, GACL, Hero Honda, ICICI Bank and Ranbaxy recorded sharp gains of institutional buying support.

The market is still bullish and driven by consistent and heavy flow of funds from the FIIs who have made heavy net investments during last week.

The broad-based BSE-100 index held steady at 3401.97 against 3401.93. — PTI

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