Monday, March 27 2006 19:06 Hrs (IST) - World Time -

Mumbai: Powered by sustained and heavy fund inflows, the stock market benchmark index today (Mar 27, 2006) soared by a whopping 129 points to a new closing peak of 11,079.02, registering sharp gains for the second consecutive session even as select heavyweight counters reached dizzy heights.

The price rally was so intense that the Bombay Stock Exchange (BSE) Benchmark 30-share Index (sensex) gained BY 238.43 points or 2.2 per cent in the last two sessions.

The sensex started off on a strong footing at 10,996.36 and gradually moved upwards to an all-time intra-trade record high of 11,101.42 and even ended the day at a new closing peak of 11,079.02 against Friday's close of 10,950.30, a net rise of 128.72 points or 1.18 per cent.

Crediting the market's impressive advance to liquidity amid concerns over liquidity crunch faced by financial system, market players said "institutions are believed to be directing funds to soaring bourses." Foreign Institutional Investors (FIIs) and local mutual funds poured in their investments into equity, particularly index-based stocks pushing them to dizzy heights, they added.

FIIs reported fairly heavy inflows during last week, taking the total net investments to Rs 48.31 billion in equity so far in the month.

Domestic mutual funds made net purchases of Rs 4.24 bn in the last week and their net investments amounted to Rs 29.48 bn so far in March.

Operators and retailers seemed to be covering their short positions in derivatives in view of approaching expiry of the contract.