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ENS ECONOMIC BUREAU
MUMBAI, JAN 7: Indian stock markets staged a smart rally on Thursday, inspired by the big gains in other Asian markets and heavy buying by foreign funds. Sensex gained 93 points pushing up share prices across the board on the Bombay Stock Exchange. The S&P CNX Nifty index of the National Stock Exchange (NSE) shot up by 26.45 points to 954.70.
Trading commenced on a better note and pivotals moved up further as the session progressed on heavy purchases by foreign institutional investors (FIIs) resulting in renewed buying from bulls before the approaching end of the account on Friday. The firm trend in South-east Asian markets also encouraged FIIs to invest in the Indian markets, where prices are relatively low.
Wall Street's record highs on Wednesday inspired big gains in Asia, driving shares in Hong Kong, Singapore and Seoul up more than four per cent. Australia closed at a record high, Jakarta surged seven per cent, Manila hit a seven-month peak and Taipei added 3.3 per cent as markets across the regionextended a fast-paced start to 1999.
Sensex touched the day's high of 3321.47 during the mid-session but declined to finish at 3299.09 with a size able gain of 93.41 points. With today's gain, Sensex scored 240 points in just four sessions. The BSE-100 index moved up by 37.15 points to 1461.64.
FII fund managers said Asia will attract more portfolio flows in 1999 and India could hope to get a share of this because they would spread their risk across the region. "I think this year you should see serious money coming into Asia. Last year it was more of a sell Asia," said an FII source, adding, "I think the perception today is that the worst is over for Asia. The Thai economy has rebounded very well, the Korean economy has rebounded well, Singapore is also doing well. On the back of that I think money is going to come."
Brokers said in view of persistent buying, bear operators were forced to cover their positions on fears of further rally in stock prices.
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.
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This story was printed from Net Express located at http://www.expressindia.com. Net Express provides a portal to India, with news from The Indian Express and The Financial Express along with sites on travel and tourism, the entertainment industry, the power sector, the environment and much more.
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