Sensex up 447 pts on global cues
The Times of India, April 3, 2009, Page 19
MUMBAI: Positive global cues gave markets the push that set the two major indices BSE sensex and NSE nifty--for a further rise of 15-20% from the current levels. The sensex, after opening nearly 200 points higher, rallied through the session to close at 10,349, up 447 points on the day. Nifty ended 151 points higher at 3,211. These indices ended near their five-month closing highs.
With the US market showing strength on Wednesday despite talks of bankruptcy for auto giant General Motors, Asian markets picked up the cues on Thursday. The rally in other parts of the region forced Dalal Street investors to jump in and realty, metals and oil & gas led the gainers. FMCG was the only laggard with BSE's FMCG index closing a marginal 0.3% lower. At the end of the session, investors were richer by Rs 1.37 lakh crore with BSE's market capitalisation now at Rs 32.4 lakh crore.
The news that G20, the group of 20 most influential countries in the world, pledged $1 trillion for reviving the global economy, could further boost market sentiment when Dalal Street opens on Monday. Markets are closed on Friday for Ram Navmi.
US stocks added to gains on Thursday after the board that sets US accounting standards agreed to give banks more flexibility in applying mark-to-market accounting to their toxic assets.
Optimism was also boosted as leaders of the G20 nations agreed to put an additional trillion dollars into the ailing global economy through extra funding for groups like the IMF. The Dow Jones industrial average climbed 275 points, or 3.54%, to 8,037 in early trading.
Although not much has changed at the fundamental level in the domestic market over the last few weeks, technical charts are throwing up interesting prospects for nifty as well as sensex, chartists said. "Though there is some resistance at around the 10,700 level for sensex, we are looking at a 11,800-12,500 range for the index in about four weeks,'' said Anant Rao, deputy-head, derivatives, SBI Caps Securities.
On nifty, the range is 3,450-3,650, said Sudhanshu Pandey, technical analyst, LKP Shares. "For long, nifty was unable to break the 2,500-3,150 range. On Thursday, the index closed above 3,150 and now we expect some sharp upmove in the next 4-6 weeks,'' Pandey said.
Chartists said the best case scenario for nifty is 3,900-4,000 level, a spurt of about 30% from the current level. For sensex that translates to above the 13,000 mark.
However, a technical analyst with a local brokerage had a word of caution: "The short term peak for sensex and nifty could coincide with the election results and that could follow some sharp corrections.''
Over the next few weeks, market's direction will also be impacted by results for the January-March quarter, market players said. Among frontline stocks, Infosys will start the results season on April 15. At the end of the month, RBI will announce its annual policy statement which could also affect sentiments.
In Thursday's market, DLF, Jaiprakash Associates, Tata Motors, Reliance Communication and ONGC led the sensex gainers. Among the 30 sensex stocks, only Hindalco ended in the red. In the broader market, gainers outnumbered laggards by a ratio of nearly 4:1 with 2,014 advances to 535 declines.
Turnover on the bourses also showed a sharp rise. On BSE, the turnover at Rs 4,926 crore was substantially higher than last month's average daily turnover of about Rs 3,500 crore.
The Times of India, April 3, 2009, Page 19
MUMBAI: Positive global cues gave markets the push that set the two major indices BSE sensex and NSE nifty--for a further rise of 15-20% from the current levels. The sensex, after opening nearly 200 points higher, rallied through the session to close at 10,349, up 447 points on the day. Nifty ended 151 points higher at 3,211. These indices ended near their five-month closing highs.
With the US market showing strength on Wednesday despite talks of bankruptcy for auto giant General Motors, Asian markets picked up the cues on Thursday. The rally in other parts of the region forced Dalal Street investors to jump in and realty, metals and oil & gas led the gainers. FMCG was the only laggard with BSE's FMCG index closing a marginal 0.3% lower. At the end of the session, investors were richer by Rs 1.37 lakh crore with BSE's market capitalisation now at Rs 32.4 lakh crore.
The news that G20, the group of 20 most influential countries in the world, pledged $1 trillion for reviving the global economy, could further boost market sentiment when Dalal Street opens on Monday. Markets are closed on Friday for Ram Navmi.
US stocks added to gains on Thursday after the board that sets US accounting standards agreed to give banks more flexibility in applying mark-to-market accounting to their toxic assets.
Optimism was also boosted as leaders of the G20 nations agreed to put an additional trillion dollars into the ailing global economy through extra funding for groups like the IMF. The Dow Jones industrial average climbed 275 points, or 3.54%, to 8,037 in early trading.
Although not much has changed at the fundamental level in the domestic market over the last few weeks, technical charts are throwing up interesting prospects for nifty as well as sensex, chartists said. "Though there is some resistance at around the 10,700 level for sensex, we are looking at a 11,800-12,500 range for the index in about four weeks,'' said Anant Rao, deputy-head, derivatives, SBI Caps Securities.
On nifty, the range is 3,450-3,650, said Sudhanshu Pandey, technical analyst, LKP Shares. "For long, nifty was unable to break the 2,500-3,150 range. On Thursday, the index closed above 3,150 and now we expect some sharp upmove in the next 4-6 weeks,'' Pandey said.
Chartists said the best case scenario for nifty is 3,900-4,000 level, a spurt of about 30% from the current level. For sensex that translates to above the 13,000 mark.
However, a technical analyst with a local brokerage had a word of caution: "The short term peak for sensex and nifty could coincide with the election results and that could follow some sharp corrections.''
Over the next few weeks, market's direction will also be impacted by results for the January-March quarter, market players said. Among frontline stocks, Infosys will start the results season on April 15. At the end of the month, RBI will announce its annual policy statement which could also affect sentiments.
In Thursday's market, DLF, Jaiprakash Associates, Tata Motors, Reliance Communication and ONGC led the sensex gainers. Among the 30 sensex stocks, only Hindalco ended in the red. In the broader market, gainers outnumbered laggards by a ratio of nearly 4:1 with 2,014 advances to 535 declines.
Turnover on the bourses also showed a sharp rise. On BSE, the turnover at Rs 4,926 crore was substantially higher than last month's average daily turnover of about Rs 3,500 crore.
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