Sensex closes at 6,785, a record high

MUMBAI: On Thursday, oil & petroleum sector majors ONGC and Reliance Industries gave the biggest post-budget boost to the market, as did FM's assurance that the government would revisit the proposed taxation of fringe benefits.

As investors took stock of the positive developments, the BSE Sensex ended 98 points, or 1.5 per cent higher at 6,785 points, a record peak, along with BSE's market capitalisation, which jumped by over Rs 26,000 crore to nearly Rs 17.5 lakh crore, also highest ever. P Chidambaram's assurance that his ministry would re-consider the tax proposals relating to fringe benefits, the biggest issue that has been giving jitters to the market since the Budget on Monday, enthused investors to pump in money into the market. "Along with select MFs which are flush with funds, FIIs bought on today," said head of institutional dealing at a brokerage. Despite recent market jitters relating to the proposed taxation structures, FIIs have been investing in the Indian market. Official data released on Thursday showed that FIIs had pumped in $160 million (Rs 700 crore) into the market the previous day. After pumping in nearly $2 billion in February, FIIs have pumped in $361 million this month, Sebi data showed.

Also, the news that a Reliance group company has sold around 86 lakh shares of ONGC, picked up during the latter's public offer in March 2004, also enthused market players. "On one hand, this will increase liquidity in the ONGC counter as part of the 86 lakh shares (that changed hands) are likely to be available in the market. On the other hand, the sale proceeds would boost the finances of the Reliance group company that owns a majority stake in Reliance Infocomm," explained a dealer at a local brokerage.

At the end of the session, ONGC stock, one of the Sensex heavyweights, ended nearly 4 per cent higher at Rs 889 while Reliance Industries ended 1.8 per cent higher at Rs 558. BSE's oil & gas index ended 2.1 per cent higher at 3,192. The other top Sensex gainers were Cipla, up nearly 4 per cent at Rs 268, Wipro up 4 per cent at Rs 697 and Bajaj Auto, too up almost 4 per cent at Rs 1,084. On the sectoral front, the top gainers were automobile, with BSE's auto index up 2.5 per cent at 2,852 and PSU index up nearly 2 per cent at 4,512. Looking at the momentum, chartists feel that the Sensex would reach a new high of 7,000 over the next few sessions.