Sensex set to touch key 5,000 mark

With foreign funds continuing their buying spree in the Indian stock market, the benchmark index is all set to touch the key 5,000 level this week. Traders and analysts expect the market to register further gains on the eve of the Diwali festival.

The Sensex closed last week at 4,930.53 points, up 3.38 per cent on the week. On the National Stock Exchange, the Nifty index gained three per cent to finish at 1,569.45 points.

"The market is in a festival mood with no bearish pattern in the chart. The Sensex is clearly on track to cross the key level of 5,000 points this week," said the head of a leading city brokerage. He said Old Economy stocks, automobiles, banking, pharmaceuticals and refineries are still good picks.

The BSE will hold its auspicious 'muhurat'‚ trading session for Samavat year 2060, on Saturday evening. According to authorities, the deals transacted on Saturday will be merged with the following Monday's regular trading and settled under the common settlement on October 29.

The market is expected to take cue from a new bunch of quarterly results ranging from automobiles to banking and fast moving consumer goods to pharmaceuticals this week. Analysts said strong results are expected to drive the index above 5,000 points although Indian bourses may witness a slight fall in volumes on account of the festival fever.