No stops for this rally as tech stocks take the Sensex to 8800

04 October 2005

Markets continued their strong up trend today as well, ahead of the earnings season starting next week. Most analysts expect the results to be in line with expectations and traders are unwilling to exit their long positions as the markets keep moving up.

After opening with a positive gap, the indices kept a steady pace to cross their lifetime highs by noon. The Nifty was the first to cross a psychologically significant mark by crossing 2650 decisively after flirting with the level earlier in the day. By afternoon the indices were in new territory and the Sensex crossed the 8800 mark for the first time by late afternoon.

Both the Sensex and Nifty closed the days with gains of well over a per cent each.

Tech stocks, except TCS, led from the front today as depreciation in the rupee and high expectations about the second quarter results swept most of them to a new territory. Wipro was the star of the day, rallying throughout the session and closing with gains of over 5 per cent.

Infosys added close to 3 per cent by close to end at a new yearly high. Satyam also closed the day with strong gains of over 2 per cent. Some less than optimistic noises from IT sector analysts about the company kept TCS subdued. The stock closed half a per cent lower.