Mumbai: The Sensex today (Nov 24, 2004) rallied smartly in a fairly volatile market during morning trading even as shares of Reliance group companies reacted negatively on the Bombay Stock Exchange.

The market is being driven by consistent and heavy FII inflows which has crossed the previous record investments in a calendar year.

The BSE Benchmark 30-share Index opened moderately lower at 6007.87 as against yesterday's close of 6009.86 and later surged up to a high of 6040.17 before being quoted at 6014.37 at 10.30 am, up 6.50 points.

Foreign Institutional Investors (FIIs) reported net investments of Rs 336.40 on Monday after making net purchases of Rs 1360.70 crore during last week.

In eleven months this year, FIIs have pumped in about Rs 30,000 crore or $ 6.6 billion, the highest-ever investment in any calendar year in the history of Indian bourses.

Reliance group shares RIL, REL, IPCL and Reliance Capital, however, witnessed heavy selling pressure following the on-going problems over the "ownership issue".

Selling in these scrips was attributed to reports that RIL chairman and managing director Mukesh Ambani yesterday re-asserted his authority. Ambani reportedly sent a message to employees that the chairman and managing director is the final authority on all matters concerning Reliance.

Brokers expected volatile activity during the day in view of approaching expiry of November contract in Futures and Options (F&O) segment on Thursday.