Financial Daily from THE HINDU group of publications
Tuesday, Apr 04, 2006
Financial Daily from THE HINDU group of publications Tuesday, Apr 04, 2006 |
|
|
|
|
|
|
|
Home Page
-
Stock Markets Markets - Stock Markets Our Bureau
On a high It took just eight trading sessions to gain 500 points. Money pumped in by foreign institutional investors and mutual funds continues to push the markets into uncharted territories.
Mumbai , April 3 A 284.40-point rise in the Sensex took the markets by surprise on Monday. The continued surge in liquidity propelled the indices to not just new highs but over 2 per cent rise in value on a single day of trade. The Sensex took only eight trading sessions to gain 500 points. On March 21, it had breached the 11,000-level and today it closed well over the 11,500-mark. The last time the Sensex rose more than 250 points was in May 2004. On a day where trading was indisputably bullish, the 30-stock benchmark opened strong and touched an intra-day high of 11,579.10. It shed a little and closed at 11,564.36, a net appreciation of 2.52 per cent. The Nifty gained 2.08 per cent today with its 70.75-point rally to close at 3,473.30.
Markets surprised
Even though market experts say that stocks are getting expensive, money pumped in by foreign institutional investors and mutual funds continues to push the markets into uncharted territories. But the force of the rally today surprised even analysts who have consistently been bullish about this market. "We all know how much money is waiting at the sidelines, but were not anticipating such a strong show of liquidity force. Technical analysts have to rework their charts as no one expected the Sensex to cross 11,500 in such a short span of time," said an analyst. While market experts have been pointing out that market breadth has been negative during the last month of trade and markets are moving on the momentum of the indices, there are sectors that have overtaken the Sensex in their growth over the last three months.
Strong rallies
Construction and real estate companies have posted very strong rallies. Since January, share price of Lok Housing and Construction has appreciated by 671 per cent. Morarjee Real Estate has gone up by 146 per cent, Ansal Housing by 138 per cent and Ansal Buildwell by 116 per cent. Technology companies that have largely been non-participative in the current bull rundid well today. Infosys Technologies is ushering in results season as it comes out with its earnings numbers on April 14. The scrip gained 5.45 per cent today and closed at Rs 3,143.25. "With the Reliance Petroleum issue around the corner, we expect the market to be strong until the IPO. Our advice to clients is to hold on to their portfolio. "Even if they cannot catch the peak of the market, only when corrections start will we advise them to book profits," said Mr Naresh Kothari, Head Institutional Sales, Edelweiss Capital.
Related Stories: More Stories on : Stock Markets | Stock Markets
Article E-Mail :: Comment :: Syndication :: Printer Friendly Page
|
Stories in this Section |
|
The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription Group Sites: The Hindu | Business Line | Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |
Copyright © 2006, The
Hindu Business Line. Republication or redissemination of the contents of
this screen are expressly prohibited without the written consent of
The Hindu Business Line
|