Saturday, January 7 2006 12:17 Hrs (IST) - World Time -

Mumbai: Riding high on increased liquidity into the bourses, the Sensex continued its upward march and scaled new peaks, adding to the kitty another 242 points during the week even as the current market valuations and economic fundamentals attracted sustained FII inflows.

Global liquidity remained the prime factor for the market rally with Foreign Institutional Investors (FIIs) pouring more than Rs 1943 crore in the first four days of the New Year.

In the week to January 7, the Bombay Stock Exchange (BSE) Benchmark 30-share Index (Sensex) touched a new intra-trade record high of 9,680.92 and also hit an all-time closing peak of 9,648.08 before ending the week at 9,640.29 against last weekend's close of 9,397.93, up by 2.58 per cent.

The market is flush with global liquidity and the BSE Benchmark expected to reach the important 10,000 level before presentation of the Union Budget sometimes at February end.

Looking at the heavy investments in the first week of New Year, FIIs too are expected to pump in funds in Indian equity more aggressively as India has become important investment destination with better-than-projected growth in the economy coupled with excellent corporate performance.

Compared to other countries, Indian markets also were considered healthy for investments with attractive valuations and timely corrections while inflows remained unabated.

Meanwhile, domestic investors including mutual funds have availed the opportunity to take benefits and book profits at higher levels. Local mutual funds reported net sales to the tune of Rs 344 crore in four days between January 2 and 5.