Mumbai: The market today (Dec 6, 2004) once again, soared to new historic high of 6386.29 for the second consecutive session, before heavy profit booking drove it down to end flat despite sustained FII inflows and stability in global oil.

Banking stocks hogged the limelight on reports that Reserve Bank of India (RBI) might change the norms to allow banks with higher capital to lend more to brokers, directly invest in shares and finance IPO investments.

The BSE Benchmark 30-share Index, which hit new intra-day record high of 6386.29, minutes after a strong start at 6351.04, later met with resistance and dropped substantially to end the day at 6322.50 as against last Friday's (Dec 3, 2004) close of 6322.76, a fractional fall of 0.26 point.

Foreign Institutional Investors (FIIs) reportedly were heavy buyers in index-based counters while operators and local funds continued their selling in a bid to book profits at the higher price levels.

Software majors including Infosys Tech, Wipro and Satyam Computers witnessed selling pressure in view of appreciating rupee. The top heavyweight RIL also suffered a sharp setback on selling triggered by reports indicating persistent differences between Ambani brothers.

Key counters including HPCL, Tata Steel, HLL, Grasim, Dr Reddy's, BHEL, ACC, GACL, Hero Honda, ICICI Bank and Ranbaxy recorded sharp gains of institutional buying support.

The market is still bullish and driven by consistent and heavy flow of funds from FIIs, which have made heavy net investments during last week.