Sensex nearing 18,000 pts, Chidambaram cautions retail investors

Sensex nearing 18,000 pts, Chidambaram cautions retail investors

Mumbai, Oct. 3 (PTI): Tracking the global bull-run, Indian stocks led by refinery and power sector zoomed to push the benchmark Sensex closer to another peak of 18,000 points level on the Bombay Stock Exchange in early trading today.

The bull-run that entered the 11th straight day today kicked up the benchmark Sensex higher by 624.56 points at 17,953.07 at noon, and just 47 points away from a new historic peak at 18,000 points level.

Marketmen said if the Sensex succeeded in gaining this new height, then it would be the shortest 1,000 point journey in the bourse's history, surpassing the previous 16,000 to 17,000 in six trading sessions on September 26.

Buying activity gathered momentum on reports of global stock markets, including the U.S., Hong Kong and Japan surging to record high in previous day's trading when Indian and Chinese markets were closed.

As the buying activity picked up, the second wide-based National Stock Exchange index Nifty also crossed 5200 points level by adding 192.40 points at 5261.35 as most of the power stocks led by Tata Power, and refinery stocks led by Reliance Industries (RIL) shot up on fresh buying.

Tata Power stocks were higher after rival Reliance Energy said a unit will sell shares to increase generating capacity in order to meet electricity demand.

RIL, which has the most influence on the Sensex movement, surged along with other energy scrip ONGC lending maximum support to the indices.

Chidambaram cautions

Finance Minister P Chidambaram today advised retail investors in the stock market to exercise caution as the benchmark index nears the 18,000-point level, while welcoming the interest shown by foreign institutional investors.

"I do not think retail investors are entering the market at this level. I would advise them caution," he told reporters here.

There is apparently lot of interest from foreign institutional investors, the Finance Minister said, adding: "Why should we not welcome it."