Money on the markets

A maturing market amid the mayhem

To 15,000 and back

June 3, 2009

The Sensex topped 15,000 points during trade on Wednesday for the first time in nine months, but lost steam and closed at 14,870 as investors booked profits.

The 30-share sensitive index swung from an intra-day high of 15,045 to an intra-day low of 14,734, and finally closed 4 points down. The fifty-share Nifty ended 0.12 percent higher at 4530.

Profit-booking was seen mainly in Reliance Industries, Infosys and SBI.  INDIA-STOCKS/6PCT

On the sectoral front, the BSE Banking Index shed 1.2 percent, followed by the IT Index which ended 1percent lower, mainly due to rise in the rupee. The BSE Consumer Durable Index, however, ended higher at 4.04 percent.

FIIs bought net $44.4 million in shares and $374.7 million in debt. Aggressive buying of Indian stocks by FIIs has kept investor sentiments upbeat. Their total inflow in calendar year 2009 totalled $4554.6 million.

Sustained buying by foreign funds, improving global and domestic economic data, and the prospect of having a stable government have all contributed to the recent rally. With the UPA government comfortably placed without the support of the Left, investors as well as corporates are hopeful of major divestment plans and tax breaks form the government.

Do you think the Sensex will close above the 15,000 psychological level tomorrow, or will there be more profit booking?

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