Indices scale new peaks on record volumes

Markets opened with a huge positive gap of close to two-thirds of a per cent from yesterday's closing levels. The momentum from yesterday's strong closing was carried forward as derivatives of the June series expired today.

The surge in indices was helped by strong gains in frontline technology stocks, ONGC and private banks like HDFC. Strong buying was seen in telecom stock VSNL, which was the largest percentage gainer among index stocks.

Indices held firm and traded in a range till the very end of the trading session when a fresh bout of short covering pushed them to all-time highs. It was too late to give up any of those gains and the indices managed to close near the highs of the day.

Combined market volumes for the cash and derivatives segments on both exchanges touched an all-time high of over Rs32,500 crore.

The Sensex touched the 7200-mark again today but could not close above it, ending the day at 7194. The Nifty with a gain of 29 points from yesterday closed at 2220, above the 2200-mark for the second time this week.

Nifty July futures discount to the spot index widened to 29 points from yesterday's 19 points.