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Boosted by FIIs, Sensex finally crosses 4000 mark

Frenzied buying by foreign institutional investors -- FIIs --, domestic institutional investors coupled with hectic buying by speculators pushed up the Sensex above the 4000 mark on the Bombay Stock Exchange during the week ended June 13.

Reflecting the bullish phase the BSE Sensitive Index registered a record gain of 193.55 points to 4029.99 points over the previous week's close of 3836.44. The BSE-100 index also recorded a handsome gain of 81.48 points to 1726.71 against the previous close of 1645.23.

Similarly the BSE-200 and Dollex indices moved up by 17.70 points and 8.03 points to 384.54 and 178.73 points against last Friday's close of 366.84 and 170.70 points respectively.

Market sources said the FIIs made good purchases mainly in the index-based shares while domestic institutional investors and speculators followed their path. As a result, the market witnessed an unprecedented rally.

Business volumes suffered a marginal setback on the BSE as the SBI scrip witnessed a sharp decline in its turnover during the week. Stockbrokers attributed this decline to the ongoing strike of SBI officers in Bombay. However, the SBI scrip recorded a gain of Rs 5 to Rs 318.50 against the previous close.

The total turnover on the BSE declined marginally by Rs 691 million to Rs 36.61 billion against last week's turnover of Rs 37.29 billion.

In a major decision, the BSE restrained its members from giving any personal guarantee to the National Stock Exchange. About 150 BSE members also have NSE membership.

Market sources said the issue of bonus shares of Reliance Industries, gradual improvement in the political situation, and good corporate results from Tata Tea and HPCL among others encouraged institutional investors to buy shares.

During the week, the cement giant ACC gained smartly by Rs 82.50 to touch Rs 1,205, Bajaj Auto gained by Rs 2.75 to touch Rs 894.75, Britannia gained by Rs 1.50 to touch Rs 257.50, BSES gained by Rs 1.75 to touch Rs 240.75, Cadbury gained by Rs 7 to touch Rs 302, Century gained by Rs 101 to touch Rs 1,970, Colgate gained by Rs 64.75 to touch Rs 1,300.25, Hindalco gained by Rs 39.50 to touch Rs 968.75, L and T gained by Rs 17.50 to touch Rs 238.50, MTNL gained by Rs 30.75 to touch Rs 303, Nestle gained by Rs 20.75 to touch Rs 287.50, Reliance gained by Rs 13 to touch Rs 319.50, Siemens gained by Rs 7.75 to touch Rs 256.75, State Bank gained by Rs 5 to touch Rs 318.50, Telco gained by Rs 19.50 to touch Rs 422.50, Tisco gained by Rs 10.75 to touch Rs 182.50 and Tata Tea gained by Rs 16.50 to touch Rs 346. BHEL declined sharply by Rs 33 to touch Rs 425.

UNI