Sensex hits 12,000 mark, scales record high

By agencies   |   Thursday, 20 April 2006, 07:00 Hrs
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MUMBAI: The country's stock market benchmark Sensex on Thursday crossed the crucial 12,000 points level on brisk buying in index heavyweights like Reliance, Tata Steel and Tata Motors.

The 30-share Sensex covered the 1,000 point journey from 11,000 mark in 16 trading session on the back of surging stocks in software, cement and steel shares.

Heavy trading in the counter of Reliance Industries, which carries the second heaviest weight on the index, helped push Sensex higher. Reports said RIL has struck one billion barrel oil well in Kaveri-Godavari basin.

A lot of retail money is entering the liquidity market. Among the world's emerging economies, India's robust equity market promises healthy returns. The market barometer closed over 10,000 points level on February 7 and reached the 11,000 level on March 27.

The surge also set the Sensex for a third straight record close on the back of strong earnings and guidance by leading software companies in the past week.

The market has risen steadily since Tuesday when the Reserve Bank of India surprised investors and kept a key short-term interest rate unchanged at 5.50 percent.
The decision to keep rates stable was seen as an indication that the central bank is comfortable with the inflation outlook in the surging Indian economy.

India's GDP grew 8.1 percent in the fiscal year ended March, according to initial estimates, and is expected to reach a similar pace this fiscal year while inflation has hovered around four percent although the central bank said rising fuel prices are a worry.

Overseas funds have led the rally this year by pouring more than $4billion into Indian equities on top of a record $10.7 billion in 2005.

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