Sensex, Nifty race to new heights in sustained rally

MUMBAI: The stock market on Wednesday remained strongly bullish and raced to dizzy heights, riding on a string of positive factors, mainly high expectations of robust corporate earnings.

The market sentiment was enlivened by peace on political front as well as the Institute of Economic Growth's forecast that inflation would remain within the RBI's target of 4.0 to 4.5 per cent in the medium term with a downward pressure on the interest rates in next few months.

The Bombay Stock Exchange (BSE) 30-share Sensex opened with a wide upside gap of 193 points and later set a new intra-day high of 18,703.67 before ending the day at a fresh closing peak of 18,658.25, a net rise of 378.01 or 2.07 per cent from Tuesday's close of 19,280.24.

The broader S&P CNX Nifty of the National Stock Exchange (NSE) also touched a new peak of 5,454.70 and closed at an all-time record high of 5,441.45 from last close of 5,327.25, a gain of 127.45 points or 2.14 per cent.

The market ignored weak european advices due to ever rising FII inflows into Asia's fast growing economy. According to provisional figures, Foreign Institutional Investors (FIIs) made net purchases of Rs 1,420 crore on Tuesday, taking their total net investments since September 19 to $6.5 billion.

IT bellwether Infosys Technologies led a smart rally in IT majors like Satyam Computer, Wipro and TCS, in anticipation of better-than-expected Q2 results ahead of the company's meeting on Thursday.

The capital goods major L&T was another shining star with a 6.6 per cent rise on news that the company bagged $60 million order in Saudi Arabia.