Sensex scales new peak, ends above 16500

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After a sluggish start, the index surged upwards riding on the back of heavy buying of blue chip stocks and news that inflation had fallen to a four year low of 3.32 percent.

As the crude oil price zoomed to cross $84 a barrel in future trading, refinery stocks led the initial surge and were subsequently lent support by Realty and Capital Goods, metal and Banking stocks.

The BSE Oil & Gas index soared 3.5 percent to 9340. The Realty index surged 1.5 percent to 9183, Capital goods index rose by 127.71 at 14,520.17, metal index by 89.45 points at 12,812.76 and Banking index by 51.16 points at 8,739.84.

The Auto index too posted strong gains, rising 1 percent at 5193.

The broader S&P CNX Nifty of the National Stock Exchange (NSE) too rallied strongly for the day and touched an all-time intra-day high of 4855.7 before ending at 4,838, up 90 points or 1.9 percent from the previous close.

With marginal fall in fuel, power and non-metallic mineral prices, inflation came down to 3.32 percent for the week ended September 8, against 3.52 percent for the previous week.

In comparison, the wholesale price-based inflation stood at 5.22 percent as on September 9, 2006.

However, prices of primary articles, which include major food and non-food items, rose by 0.2 percent during the week.

Surprisingly, in spite of the Sensex touching new highs, the market breadth was negative - out of 2,843 stocks traded, 1,629 declined, 1,166 advanced and 48 remained unchanged.

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