Markets extend gains for second day; Nifty at 1-year high

Mumbai, June 10 : Extending its substantial gains for the second straight day today, the market today surged by nearly 400 points with funds continuing their frenetic buying amid encouraging global cues.
With foreign institutional investors remaining aggressive buyers, the Bombay Stock Exchange 30-share index Sensex touched nearly one-year high of 15,580.81 in late afternoon trade, while the wider index Nifty touched the one-year high of 4,655.25 points.

However, profit-booking emerged soon after that and the barometer pared some of the gains to close at 15,466.81, still up by 2.25 per cent over its previous close.

Brokers said investors anticipate more spending on key development areas after the Prime Minister Mammohan Singh yesterday expressed confidence that India's economy could grow at a rate of 8-9 per cent despite global slowdown.

It was FIIs which set the pace for rally for the second day today. As per the provisional data, they pumped in a whopping Rs 955.31 crore yesterday, taking the total for current month to Rs 2,893.90 crore till June 8.

Retail investor refrained from buying at current higher levels, resulting in mid-cap and small-cap underperforming the Sensex.

Yesterday, the Sensex gained over 460 points, its second biggest gain since the UPA coalition won the General Elections. PTI