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Market remains buoyant on FII buying, Sensex continues to soar, up 116 points to 3640.42; post-Budget gain: 406 points in three straight sessions

The Sensex of the Bombay Stock Exchange surpassed yet another important mark of 3600 and shot up by 116 points as the foreign institutional investors continued their frenzied buying in select counters today.

Thanks to the Reserve Bank of India's announcement regarding cut in repo rate, bank rate and cash reserve ratio, the market staged a rally as "the cuts are going to help stock markets indirectly".

Bank scrips like SBI, Corporation Bank and also the shares of the financial institutions staged a smart rally on the expectations of increase in their profitability through the RBI's cut in bank rate and prime lending rates, dealers said.

Select scrips like Reliance, ITC, Mahindra and Mahindra, SBI, Pentafour Software witnessed heavy FII buying while Hindustan Lever, Ranbaxy, NIIT also witnessed volatile trading, dealers said.

Reflecting the bullish phase, the 30-scrip BSE Sensex opened at 3638.56 points, touched the day's high of 3691.02 points, fell to touch day's low of 3625.46 points before closing at 3640.42 points, showing a net gain of 116.44 points from the previous close of 3523.98 points.

In the rare event in last ten years of the post-Budget trading, the Sensex has poisted a net gain of 406.56 points in three consecutive trading sessions, analysts said.

The broad-based BSE-100 index also shot up by 45.64 points to 1605.37 points from the previous close of 1559.53 points.

The market witnessed a selling spree an hour before the closing and some of the pharma counters lost their initial gains though they closed higher from the previous close, dealers said.

The BSE 200 and Dollex indices closed higher by 9.68 and 7.75 points to 368.01 and 143.99 points from the previous close of 136.24 and 358.33 points respectively.

Another leading bourse of the country, the National Stock Exchange also witnessed a bullish phase today with the S&P CNX Nifty rising smartly by 36.05 points to 1051.85 points as against the previous close of 1015.80 points.

UNI

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