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Indian market breaches 6,000-mark after 4 years
Monday, 05 January 2004, 20:30 IST
NEW DELHI: India's booming share market got a further boost Friday with the benchmark index in early trade breaching the magical level of 6,000 after nearly four years on buying in heavyweight stocks.
The Indian stock market benchmark 30-share Bombay Stock Exchange sensitive index or Sensex touched 6001.02 around noon as fund investors continued to pour money into the trading ring.
The market, however, came down from its higher levels soon on some profit taking. At 1.15 pm, the market was trading at 5,978.06, netting a gain of 62.59 points or 1.06 percent over its previous session's close.
The market barometer is within a whisker of its all time high of 6,150 points touched in February 2000.
Signs of a sharp economic rebound, large-scale foreign fund inflows, higher corporate profits, and positive geopolitical situation have given Indian market a big boost in the last few months.
Analysts say the crossing of the crucial 6,000-mark comes as a major boost for investors who had badly burnt their fingers in the last few years dormant domestic stock market.
"The crossing of the 6,000 level clearly shows the strength of the blazing market rally in the last few months. It comes as a major boost for investors," said Neeraj Deewan, an equity market analyst with Quantum Securities.
"With economic fundamentals continuing to remain strong, I think it's just a matter of time before the market touches all time high figure. It's a great thing to happen to the market after a long time," Deewan told IANS.
Analysts say the year 2003 marks the country's arrival at the top level of best performing stock markets in Asia after years of dormant trading that badly affected investor confidence in equity trading.
The market was up a whopping 72 percent on the year in 2003, making it one of the best performing bourses in the Asian region.
Indian stocks had remained dormant since the dotcom bust around three years ago till early 2003. A flood of accusations of shady dealing and stock price manipulation had also kept the investors away from the market.
The year 2003, however, saw major overseas fund investors as well as modest salaried folks make their fortune in the trading ring as the Indian market emerged as a preferred investment destination.
Looking ahead, analysts expect the market bull, which has shown little signs of losing its breath in the last few months, to charge ahead with renewed vigour in 2004 on the back of strong fundamental indicators.
Analysts say about $6.7 billion of net foreign funds buying in 2003 -- the highest since foreign portfolio investment was allowed into India a decade ago -- was the main factor behind the near 70 percent rise in Indian shares.
Overseas investment in Indian stock markets fell to the lowest in a decade in 2002 as the slow pace of the government's economic reforms programme spurred foreign investors to seek gains in other emerging markets.
Source: IANS
Source: IANS