Mumbai: Equities overcame initial resistance and later rallied sharply lifting the SENSEX past 3,700-mark to end 35 points higher in brisk activity on the Bombay Stock Exchange (BSE) on July 16 on heavy buying by speculators as well as fresh purchases by foreign and domestic funds.

The BSE benchmark 30-share index that had fallen sharply to the intra-day low at 3,662.70, later bounced back and surged up to a strong finish at 3,721.65 as against July 15 close of 3,686.34, netting a rise of 35.31 points or 0.96 per cent.

The broad-based BSE-100 index advanced by 22.12 points to 1,875.61 from previous close of 1,853.49.

Foreign Institutional Investors (FIIs), which had slowed down activity for a brief period last weekend, were believed to have stepped up their investments once again making net purchases in a number of blue- chip counters.

Commenting on reports of heavy FII purchases in the past six months and indication of consistent inflow, brokers said foreign funds have turned to Asian markets, particularly to India in view of prevailing low interest regime in the US with a likely rate cut by the federal reserve in a few days.

Though the market is in overbought position right now and needs correction, brokers ruled out any major correction, which is expected around 3,750-level, with foreign funds continuously pumping in funds on the Indian bourses.

Besides the top heavyweight RIL that made a turnaround after a weak start, others like ACC, Bajaj Auto, BHEL, Grasim, GACL, HPCL, ITC, SBI, Telco and Tisco scored impressive gains on hectic buying support.

PTI