Sensex hits a new high

MUMBAI: The Bombay Stock Exchange Sensitive index, which has hardly paused for breath after recovering from a swift correction last week, on Thursday bolted past a new high of 8700 in volatile trading.

The 30-share Sensex once again hit an intra day high of 8722.17, mainly driven by hectic shortcovering in key heavyweighted counters such as Reliance, Infosys, L&T, SBI and Satyam Computer.

The Sensex witnessed choppy trade in a range of 8722.17 and 8588.47 due to squaring up activity on the last sessions in derivatives contract before ending the day at 8650.17 against yesterday's close of 8606.03, a net rise of 44.14 points. The broadbased BSE-100 index firmed up further by 11.46 points to 4566.99. Small cap stocks, however, were at the receiving end and the gravity of pressure in the segment could be gauged by a fall of 111 points in its index.

Hedge funds and operators covered their short positions in some index heavyweights, but late profit taking pared gains towards close, brokers said.

Strong liquidity and robust fundamentals visualise an extended price rally, notwithstanding an inevitable technical correction for the good health of the market, brokers added.

The market is considered to be fully priced, but some key stocks provide good investment opportunities with strong hopes of excellent second quarter earnings to be announced after October 10. The BSE Small-Cap index dropped by 111.05 points or 1.88 per cent to 5806.31. — PTI

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