SENSEX 17830.75 +123.43
NIFTY 5412.35
+44.20
USD/INR 0049.41 +00.27
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UPDATEDTIME 09.28 PM 09 FEBRUARY 2012
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The
National Stock Exchange's Nifty hit fresh 6-month highs from
August 4 levels and closed above important resistance level of 5400 as positive
cues from European peers boosted sentiments. The benchmark has gained around 20
per cent from December 2011 lows.
According to experts, the foreign institutional investors have been pumping in dollar in Indian equities as valuations had become cheap after a sharp correction in December. The inflows have been aiding the benchmarks breach resistance levels with relative ease.
"There is momentum in the market. Valuations today while they are not cheap as cheap as what we saw in December 12.5 times FY13. We are still at maybe 13.5 to 13.7 times, so there is still some more steam to go.
Foreign institutional investors have turned net buyers in the Indian markets. As per provisional data, they bought equities worth Rs 384.24 crore on Wednesday. The FIIs have pumped in around Rs 6700 crore in the last six sessions alone.
Improving economic conditions back home and monetary easing in global markets has also attracted FIIs to Indian markets, say experts.
CRR cut by RBI, and continuous monetary easing by ECB/Fed is giving positive momentum to the markets. Further, even the December quarter corporate earnings season suggests that the sales growth is still intact in India. All in all, the Indian market is giving excellent money making opportunities to the investors.
Investors now await Indian industrial production figures for the month of December 2011 for cues. According to a Reuters poll, India's IIP grew at a weaker annual rate of 3.4 per cent in December, down from November's 5.9 per cent, on slowing infrastructure output and domestic demand.
According to analysts, bearish traders who must have gone short at 5400 on the Nifty will cover their positions and this would help the markets to witness more upward momentum in coming sessions.
You would probably see a bit of short covering. People would have hoped that 5400 would stop this market so lots of significance for this level. Now, 5620 seems to be the next target. Given that the market has restarted its rally without any kind of decline just moving sideways in a 100-point range tells you that another couple of hundred points can easily happen.
The market had opened in the red in line with Asian peers due to lack of cues as Greece struggled to get bail out package to avoid default. However, the benchmarks pulled back in the green and rallied past in the last half an hour of traded following positive start to European markets.
The Nifty ended at 5412.35, up 44.20 points or 0.82 per cent. The broader index touched intraday high of 5423.40 and low of 5338.90 intraday.
The Bombay Stock Exchange's Sensex closed at 17830.75, up 123.43 points or 0.70 per cent. The 30-share index touched a high of 17879.46 and low of 17609.43 in trade today.
BSE Midcap Index was up 1.27 per cent and BSE Smallcap Index moved 1.18 per cent higher.
According to experts, the foreign institutional investors have been pumping in dollar in Indian equities as valuations had become cheap after a sharp correction in December. The inflows have been aiding the benchmarks breach resistance levels with relative ease.
"There is momentum in the market. Valuations today while they are not cheap as cheap as what we saw in December 12.5 times FY13. We are still at maybe 13.5 to 13.7 times, so there is still some more steam to go.
Foreign institutional investors have turned net buyers in the Indian markets. As per provisional data, they bought equities worth Rs 384.24 crore on Wednesday. The FIIs have pumped in around Rs 6700 crore in the last six sessions alone.
Improving economic conditions back home and monetary easing in global markets has also attracted FIIs to Indian markets, say experts.
CRR cut by RBI, and continuous monetary easing by ECB/Fed is giving positive momentum to the markets. Further, even the December quarter corporate earnings season suggests that the sales growth is still intact in India. All in all, the Indian market is giving excellent money making opportunities to the investors.
Investors now await Indian industrial production figures for the month of December 2011 for cues. According to a Reuters poll, India's IIP grew at a weaker annual rate of 3.4 per cent in December, down from November's 5.9 per cent, on slowing infrastructure output and domestic demand.
According to analysts, bearish traders who must have gone short at 5400 on the Nifty will cover their positions and this would help the markets to witness more upward momentum in coming sessions.
You would probably see a bit of short covering. People would have hoped that 5400 would stop this market so lots of significance for this level. Now, 5620 seems to be the next target. Given that the market has restarted its rally without any kind of decline just moving sideways in a 100-point range tells you that another couple of hundred points can easily happen.
The market had opened in the red in line with Asian peers due to lack of cues as Greece struggled to get bail out package to avoid default. However, the benchmarks pulled back in the green and rallied past in the last half an hour of traded following positive start to European markets.
The Nifty ended at 5412.35, up 44.20 points or 0.82 per cent. The broader index touched intraday high of 5423.40 and low of 5338.90 intraday.
The Bombay Stock Exchange's Sensex closed at 17830.75, up 123.43 points or 0.70 per cent. The 30-share index touched a high of 17879.46 and low of 17609.43 in trade today.
BSE Midcap Index was up 1.27 per cent and BSE Smallcap Index moved 1.18 per cent higher.
The rally was led by rate
sensitive sectors. BSE Metal Index gained 2.05 per cent, BSE Realty Index moved
1.95 per cent higher, BSE Bankex advanced 1.85 per cent and BSE Auto Index
moved 1.78 per cent higher. BSE Oi&gas Index was down 0.24 per cent, BSE
Capital Goods Index declined 0.11 per cent and BSE Healthcare Index edged 0.03
per cent lower.
Reliance Power (5.20%), BPCL (4.61%), Tata Power (4.40%), Sterlite Industries (4.07%) and Jindal Steel (3.88%) were the major Nifty gainers.
Reliance Power is hopeful the government will allocate natural gas to operate its new 2,400-mw plant in Andhra Pradesh, where short-term electricity prices have jumped to 19 per unit, more than three times the national average, because of soaring demand and inadequate transmission network.
Sun Pharma (-1.92%), DLF (-1.44%), Grasim Industries (-1.27%), Hindalco Industries (-1.09%) and GAIL (-0.97%) were the major losers.
Hindalco Industries net profit of Rs 450.69 crore for quarter ended December 2011 as compared to Rs 460.34 crore in the same quarter a year ago. Total income increased to Rs 6737.03 crore from Rs 6035.22 crore in the same quarter last fiscal.
Market breadth was positive on the NSE with 1014 gainers against 491 losers.
Reliance Power (5.20%), BPCL (4.61%), Tata Power (4.40%), Sterlite Industries (4.07%) and Jindal Steel (3.88%) were the major Nifty gainers.
Reliance Power is hopeful the government will allocate natural gas to operate its new 2,400-mw plant in Andhra Pradesh, where short-term electricity prices have jumped to 19 per unit, more than three times the national average, because of soaring demand and inadequate transmission network.
Sun Pharma (-1.92%), DLF (-1.44%), Grasim Industries (-1.27%), Hindalco Industries (-1.09%) and GAIL (-0.97%) were the major losers.
Hindalco Industries net profit of Rs 450.69 crore for quarter ended December 2011 as compared to Rs 460.34 crore in the same quarter a year ago. Total income increased to Rs 6737.03 crore from Rs 6035.22 crore in the same quarter last fiscal.
Market breadth was positive on the NSE with 1014 gainers against 491 losers.
Regards
RAKESH MAKIN
+91, 9041667797(DIRECT),
9915684997
OFF
0172-4657997
PANCHKULA (Haryana).
Email:makin_97@yahoo.com
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