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Talk of suspension of sanctions lifts sentiment; Sensex up 16 points to 4056.47

The US Senate's decision seeking suspension for five years all economic sanctions on India and Pakistan has boosted market sentiment at the Bombay Stock Exchange with share prices registering moderate gains on good buying interest from foreign institutional investors and local operators today.

The 30-scrip BSE-Sensex opened higher at 4090.45 points and immediately surpassed the 4100 mark to touch the day's high of 4105.09 points in the morning session in response to the US Senate's decision.

However, profit-booking by leading domestic institutional investors at higher level pushed down the Sensex by 62 points to touch day's low of 4042.89 points in the afternoon.

The Sensex finally closed at 4056.47 points, showing a net gain of 16 points or 0.39 per cent over the previous close of 4040.52 points.

According to dealers, the FIIs made purchases at the select counters, Reliance, BHEL and Larsen & Toubro.

The institutional investors bought considerable number of shares of Agrivo, BHEL, Hero Honda, NRB Bearing, SBI and Telco, dealers said.

Broad-based BSE-100 index rose by 4.62 points to 1761.09 points as against the previous close of 1756.447 points.

Leading BSE brokers said that the Reserve Bank of India's decision to raise the limit of FII investment in equity from 26 per cent to 30 per cent also encouraged the market players.

National Peroxide, Nalco, Tata Timkem, Tata Tea and United Breweries were the major gainers on the bourses, dealers said.

Meanwhile, the BSE-200 and Dollex indices closed higher by 1.16 and 0.55 points to 401.11 and 155.23 points as against the previous close of 399.95 and 154.68 points respectively.

UNI

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