Sensex hits 17,000

26 Sep 2007

The 30-share BSE benchmark index today crossed 17,000 for the first time - a straight 1,000-point rise in six days flat since it went past 16000 points on Wednesday 19 September. (See: Sensex breaches 16000-barrier) During the last five days FIIs had pired $3.66 billion in the stock markets.

The Sensex hit a lifetime high of 17013.10 and the Nifty hit a record high of 4969.80.

Today''s rally was led by software stocks in response to the Reserve Bank of India''s decision, announced after trading hours yesterday, raising the ceiling for aggregate overseas investment for mutual funds from $4 billion to $5 billion, and allowing Indian companies to invest up to 400 per cent of their net worth in joint ventures and subsidiaries abroad without prior approval. (See: RBI eases forex rules, doubles overseas investment limit to $200,000)

The rupee rose to a nine-year high of 39.62 to the dollar in early trade, up 11.7 per cent since end-2006.