Sensex up 260, crosses 14,000

Aug. 22: The country’s key stock market index on Wednesday gained 260 points to close above 14,000 level on revival of buying interest among investors, who were reassured by firmness in the Asian and European markets. The 30-share Bombay Stock Exchange, which had dipped 438 points on Tuesday on concerns about political instability, settled at 14,248.66, a rise of 259.55 points or 1.86 per cent.
The broader Nifty of the National Stock Exchange also bounced by 78.25 points or 1.92 per cent to close at 4,153.15. The modest recovery was in line with Asian and European markets. Benchmark indices in London and Paris were higher by up to 1.2 per cent. Hong Kong’s Hang Seng and Singapore’s Strait Times gained 2.8 per cent each. Shanghai Composite gained 0.5 per cent, while Japan’s Nikkei was unchanged.
Analysts, however, cautioned that a stand-off between the Left parties and the UPA government at the Centre over the nuclear deal with the US could act as a dampener going ahead. Domestic institutional investors were believed to have cornered a sizeable chunk of shares at the lower levels. Financial institutions and mutual funds also made heavy sector-specific purchases, particularly in capital goods, metal and FMCG sector, market players said.
Foreign institutional investors including hedge funds, remained net sellers. As per provisional numbers, FIIs pulled out Rs 138 crores on August 21 while DIIs pumped in Rs 826.84 crores on the same day.