Published on : Oct 24, 2013
In the early trade, Sensex gained as much as 272 points and the Nifty touched a high of 6,252. However, today, at 10: 28 am, Sensex hit up to 220 points at 20,988, while Nifty increased to 61 points to 6,239.75. This month, the overall trend of Indian stock markets have congregated over eight percent on the prospects that US Federal Reserve would delay its contract keeping in mind the partial shutdown of the US government.
In addition, the now sharp and effective recovery of the rupee has also added to the once-declining market sentiment. Since its record lows of 68.80/dollar on August 28, 2013, today rupee has substantially rallied over ten percent trading at 61.52.
Many expectations are lining up considering the earnings season in India and the rapid growth of IT companies which are perpetually exceeding estimates. It is also seen that, the inflow surge from various foreign sources have been on a strong front this month by far. Different foreign funds have bought $1.7 billion worth of Indian equities taking their full yearly purchases to $15.35 billion.
Earlier, Sensex had closed above the mark of 21,000 on November 5, 2010 which incidentally happened to be in the season of Diwali. Today, almost after three years Sensex hit a remarkable spot of 21,000 and this achievement is again attained around Diwali - which is less than two weeks away.
Before the year 2010, Sensex for the first time had hit a mark of 21,000 on January 8, 2008. During that period the index had reached a spot of 21,078 in intraday trade, however, it had closed below a mark of 21,000 at 20,873. Nonetheless, the highest intra-day value of Sensex was seen on January 10, 2008, hitting 21,206.
Sarvendra Srivastava, a technical analyst told NDTV that the Nifty can reach highs of 6,350-6,400 levels very soon in the near future as there are several signs of growth strengths in the markets. However, traders should keep a stop loss at 6,028 levels.
On the other hand, Sanjeev Prasad of Kotak told NDTV that this is a liquidity driven rally and not a broad-based one. Hence, it has nothing to do with the economic realities. He also concluded with a statement that said, certain stocks like Tata Motors and IT over the last one year have performed very well.