Sensex and Nifty create history

Mumbai, Sept 27 (UNI) It was a historic day for the Indian capital markets as both the benchmark indices, Sensex and Nifty, crossed landmark milestones with the 30-scrip Bombay Stock Exchange (BSE) Sensex today settling above the psychological barrier of 17,000 at 17,150.56, registering a gain of 229.17 points as inflows from foreign institutional investors (FIIs) reached unprecedented levels on firm expectations of solid future growth in the Indian economy.

The 50-stock National Stock Exchange (NSE) S&P CNX Nifty also set a record by ending above the 5,000 level at 5,000.55, a gain of 60.05 points after hitting an life-time high at 5, 016.40.

''FIIs and investors have understood the potential for further growth in the Indian economy. Though the appreciating rupee might be causing concerns in some quaterrs, one has to understand that this appreciation actually reflects the inherent strength of the economy.

Besides, rupee appreciation actually helps in controlling inflation as imports, especially of crude oil becomes cheaper,'' market pundits explained adding that the the markets surged at the fag end of the trading session on short-covering ahead of the expiry of this month's derivatives contracts tomorrow.

''Besides, domestic bourses rose today as a part of rally across Asian and European markets as weak US economic data reinforced expectations for another interest rate cut from the Federal Reserve, following a steep half-point reduction to 4.75 per cent last week,'' market analysts opined.

However, the market breadth turned weak as 1,274 shares advanced as compared to 1,457 that declined, while 328 remained unchanged, BSE data shows. The BSE Mid-Cap index once again struck an all time high of 7, 437.51 and the BSE Small-Cap index hit all time high of 9,127.42. Both these indices however, underperformed the Sensex.

Most sectoral indices on BSE edged higher. Among the Sensex pack, 21 advanced while 9 declined. The total turnover amounted to Rs 7,720.

Asian markets surged today, after stocks rallied on Wall Street overnight. Hang Seng soared 2.4 per cent at 27,065, Japan's Nikkei jumped 2.41 per cent at 16,832, Taiwan Weighted surged 1.69 per cent at 9,413.65, Singapore's Straits Times advanced 1.77 per cent at 3,714.77 and South Korea's Seoul Composite edged up 1.36 per cent at 1,945.28.

European markets were trading higher, with France's CAC up 0.81 per cent to 5,736.63, Germany's DAX rose 0.64 per cent to 7,851 and UK's FTSE 100 was up 0.88 per cent to 6,489.

US stocks rallied in it's last trading session led by rally in financial shares after a larger-than-forecast decrease in durable goods orders reinforced expectations of more rate cuts. The Dow Jones Industrial Average gained 99.5 points or 0.7 per cent, to 13,878.15. The Nasdaq Composite Index increased 15.58 points or 0.6 per cent to 2,699.03. The Standard&Poor's 500 Index added 8.21 points or 0.5 per cent to 1,525.42.

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