Upbeat Global Mood Lifts Market Past 10,000 Pts
The Economic Times, March 27, 2009, Page 1
SENSEX ON ROAD TO REDEMPTION
TENTH PASS
GREEN SIGNALS: RECOVERY ROUND THE CORNER? The pall of gloom over the economy may just be lifting if the Sensex’s good run in recent days—on Thursday, it rose 335 points to breach 10k—and pickup in steel production are any indicators...
Our Bureau MUMBAI
THE Sensex closed above the psychological 10,000 mark on Thursday after more than two-and-a-half months, reviving fond memories of the boom days and hopes that equities may finally be on the recovery path. Brokers attributed the gains to frantic covering of short positions in the derivatives segment—Thursday being settlement day—and the upbeat mood in world markets.
While Indian stocks have gained nearly 23% since the worldwide rally in equities began early this month, market watchers are still unsure if the rally is indicative of an impending economic recovery. Since March 9, the Sensex has gained 1,842 points, with five stocks—Reliance Industries, Infosys Technologies, ICICI Bank, HDFC and HDFC Bank—accounting for over 53% of those gains. Reliance alone made up for 25% of the rise, as the market is expecting some announcement relating to production of gas from its KG Basin blocks shortly.
The Sensex closed at 10,003.10, up 335.20 points, or 3.5%, over its previous close while the 50-share Nifty closed at 3082.25, up 97.90 points, or 3.3%. According to BSE provisional data, foreign funds net bought shares worth around Rs 1,300 crore, easily offsetting the net sales worth Rs 462 crore by local institutions.
“Even after the recent run-up, shares are not significantly expensive,” says Bajaj Allianz Life Insurance CIO Sashi Krishnan.
The Economic Times, March 27, 2009, Page 1
SENSEX ON ROAD TO REDEMPTION
TENTH PASS
GREEN SIGNALS: RECOVERY ROUND THE CORNER? The pall of gloom over the economy may just be lifting if the Sensex’s good run in recent days—on Thursday, it rose 335 points to breach 10k—and pickup in steel production are any indicators...
Our Bureau MUMBAI
THE Sensex closed above the psychological 10,000 mark on Thursday after more than two-and-a-half months, reviving fond memories of the boom days and hopes that equities may finally be on the recovery path. Brokers attributed the gains to frantic covering of short positions in the derivatives segment—Thursday being settlement day—and the upbeat mood in world markets.
While Indian stocks have gained nearly 23% since the worldwide rally in equities began early this month, market watchers are still unsure if the rally is indicative of an impending economic recovery. Since March 9, the Sensex has gained 1,842 points, with five stocks—Reliance Industries, Infosys Technologies, ICICI Bank, HDFC and HDFC Bank—accounting for over 53% of those gains. Reliance alone made up for 25% of the rise, as the market is expecting some announcement relating to production of gas from its KG Basin blocks shortly.
The Sensex closed at 10,003.10, up 335.20 points, or 3.5%, over its previous close while the 50-share Nifty closed at 3082.25, up 97.90 points, or 3.3%. According to BSE provisional data, foreign funds net bought shares worth around Rs 1,300 crore, easily offsetting the net sales worth Rs 462 crore by local institutions.
“Even after the recent run-up, shares are not significantly expensive,” says Bajaj Allianz Life Insurance CIO Sashi Krishnan.
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