Mumbai: Riding piggyback on tremendously bullish fervour, the SENSEX surpassed 4200-mark as stocks soared to dizzy heights in volatile activity at the Bombay Stock Exchange (BSE) on August 27 even as the wild price movements in prices indicated to a sharp correction in near future.

The BSE Benchmark 30-share Index neared the 30-month high ending with a hefty rise of 53.27 points or 1.28 per cent at 4205.56 as against yesterday's close of 4152.29, after rising to the intra-day at 4222.39 during the session.

The broad-based BSE-100 Index also spurted by 41.05 points to 2200.60 from previous close of 2159.55.

Largely attributing the price rally to unabated flow of investments, brokers said net purchases by Foreign Institutional Investors (FIIs) and domestic mutual funds on August 25, the day market witnessed a crash, helped restore investors' confidence.

The market even witnessed increased participation by retail investors that had turned cautious earlier.

The wild movements in the stocks, which has been on a roll for quiet some time, indicated to a sharp correction shortly, market sources said adding "a healthy correction is not ruled out once the derivatives settlement was through on Thursday".

FIIs had made net investments of Rs 72 crore and local funds pumped in Rs 33 crore on the first day of week, when bomb explosions rocked the business capital and the UP Chief Minister recommended dissolution of the assembly.

PSU (Public Sector Undertaking), Bank and Pharma stocks were in the limelight having scored impressive gains on hectic buying support.

PTI