Thursday, March 16 2006 11:26 Hrs (IST) - World Time -

Mumbai: The Bombay Stock Exchange Benchmark 30-share Index (Sensex) once again turned strong after a brief pause on Tuesday and spurted by 82 points during morning trading even as the market was driven by high liquidity.

Foreign Institutional Investors (FIIs) as well as local mutual funds continued to make heavy purchases in equity after a public holiday yesterday while the market remained upbeat despite concerns over some pressure on liquidity owing to the advance tax flows.

The Sensex opened sharply up at 10,859.39 over Tuesday's close of 10,801.72 and later surged up to a high of 10,889.25 before being quoted at 10,883.53 at 10.30 am, up by 81.81 points from previous close.

Investors, however, expected the market to witness high volatility as it neared the crucial 11,000 level.

FIIs reported net investments of over Rs 1,719 crore in equity and mutual funds were net buyers to the tune of Rs 1,277 crore during last week. FIIs also were net buyers in the futures on Monday.

The market is extremely bullish because of continued liquidity with no signs of any major FII pull out as well as mutual funds holding large amount of funds, brokers said.

The top heavyweight RIL hogged the limelight on fresh buying support.

ADAG group companies also were in the forefront on news that the group would invest Rs 1052 crore in Reliance Natural resources Ltd (RNRL).

RNRL was stuck in 10 per cent upper circuit filter while RCVL and REL scored handsome gains.