Sensex breaks the 14,000 barrier

By siliconindia   |   Thursday, 04 January 2007, 18:30 IST
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Mumbai: The bullrun in India's BSE touched a new high on Wednesday with the benchmark Sensex closing above 14,000 for the first time. The 30-share benchmark index of the Bombay Stock Exchange finally closed at 14,014 points after touching an intra-day high of 14035.67 and a low of 13897.42. On the broader National Stock Exchange, the 50-company S&P CNX Nifty was up 16 points to close at 4,024. There are two things that drove the peaking of the Sensex. Firstly, in January, FIIs re-allocate their funds for the emerging markets and India is expected to top the charts this year among the emerging markets. Last year, it assumed the second position after Taiwan; while India had received $8 billion, FIIs inflow in Taiwan was $15 billion. Secondly, gains by technology and auto stocks helped breach the key 14,000 barrier. Bajaj Auto Ltd. stocks jumped 3.8 percent to Rs 2,843. IT major Infosys Technologies ended 1.8 percent higher at Rs 2,313, Wipro Ltd. gained 1.4 percent to Rs 620 and Satyam Computer Services Ltd. rose 1.3 percent to close at Rs 515. "Overall the market looks lackluster, but there is likely to be stock specific buying especially in technology stocks like Infosys and Wipro," said Nilesh Sangani, a dealer at Tower Capital. Announcements of the latest quarterly earnings that companies will begin to unveil starting next week is expected to cause further activity in the market