MUMBAI, June 30: The Bellwether 30-scrip BSE Sensitive Index shot up to a new 52-week high of 4,272 points on Monday, the first day of a new trading settlement. Marketmen said the day was marked by hectic buying by foreign institutional investors (FIIs). The previous 52-week high of the Sensex was 4,148.86, recorded a few days ago.

The index closed the day at 4,256.09, recording a gain of 122.84 points over Friday's close of 4,133.24.

The day began on a sour note on the exchange with a technical snag delaying commencement of trade by almost four hours. Trading began only at 2.30 pm."With the long positions squared up to a greater extent on Friday, and the pivotals attracting a higher carryforward charge of 2.8 per cent, the market was bound to zoom," a dealer at an FII brokerage firm said.

"The main reason for the spurt is the `programme trading' of a couple of new FIIs, who took fresh positions in index-based stocks," he said.

Exchange carryforward data reveal that deliveries of pivotals rose by almost 76 per cent, which, market analysts say, is a healthy sign.

What also fuelled the rally was the select purchase of domestic institutions and mutual funds in their bid to shore up their net asset values. Monday was the half-yearly closing for many of the institutions.

"Foreign funds have been constantly pursuing about 25-30 index-based stocks," BSE member Sunil Mirpuri said.

Market sources said foreign funds like Credit Lyonnais, James Capel, DSP Merrill Lynch have been placing huge buy orders on stocks like HDFC, Punjab Tractors, Swaraj Engines, Nestle, Ranbaxy, Pond's, Glaxo and ITC.

The extension of BSE's trading session by an hour after the closure of NSE's session provided scope for arbitrage opportunities. ITC, for instance, offered an arbritrage of Rs 5-7. The scrip touched a new 52-week high of Rs 562.50 on the BSE.

The Reserve Bank of India's approval to HDFC on increasing its FII stake also propped sentiments. The HDFC scrip touched a high of Rs 4,082 on the BSE. On the NSE, it shot up to Rs 3,966 and attracted circuit filter. "Predictions on technical grounds have proved wrong once again," a research analyst of Prime Securities said.

"The market has seen speculative and delivery-based purchases across the board. With domestic institutions chary of selling, the index is bound to rise further," he said.

The scrip movement of ACC beyond Rs 1,450 belied predictions of a correction by technical analysts.

Domestic institutions have kept clear of selling equities on the hope that the index will shoot up further, enabling them to book profits at higher levels.

"Technical reversals in some of the leading counters, with the stocks inching up, promises a new phase," one BSE member said.

The BSE Sensitive Index touched an all-time high of 4,630 on September 12, 1994. Marketmen say Monday's rally may be a trigger point for the Sensex to breach this mark.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.