Indices surge ahead as frontline socks gain

08 June 2005

Markets opened with a big positive gap in the morning even though US markets had closed on a flat note yesterday. Major Asian indices were firm today and crude had declined overnight, spreading some positive sentiment among traders. FII inflows so far during June have remained positive.

After trading sideways till noon, the indices turned volatile and gave up most of the gains. The weakness did not last long either as the indices bounced back equally strong to retest the highs of the morning.

Markets saw another sharp drop late in the afternoon before renewed buying in Reliance and banking stocks helped the indices to close at the highs of the day.

Both Sensex and Nifty managed to close above the psychologically important marks of 6800 and 2100 respectively. These are the highest levels of the indices for almost 3 months.

With a close to 3 per cent gain, Infosys regained the top ranking in market capitalisation among technology stocks, pushing TCS to second place.

Sensex closed at 6858, up 77 points and the Nifty at 2112, up 14 points from yesterday's close. Nifty June futures discount to the spot widened to 18 points from yesterday's 10 points.