Market shrugs off political fears

A strong rally in Asian markets propelled the Indian market, extending its winning streak to third straight trading session ahead of the government’s trust vote in parliament on Tuesday. Ignoring political uncertainties, the 30-share BSE Sensex gained 215 points or 1.57 per cent at 13,850.04. The broad-based S&P CNX Nifty advanced 67.25 points or 1.64 per cent at 4159.50.

“The market was dancing to the political tune today. There was volatility as with every passing second the sentiment changed. Stocks from the financial services sector looked attractive. As it looked today there was a feeling that the government will manage to scrape through and tomorrow there might be a spurt of 8-10 per cent if the government manages to stay afloat,” said Arpit Agrawal, head of research at Arihant Capital Markets,

“”The market is likely to remain choppy tomorrow due to the confidence voting in Parliament. There might be a sharp rally if UPA manages to win the trust vote. On the upside 4220 may be resistance levels and the downside 4060 might provide support,” said P K Agarwal, head of research at Bonanza Portfolio Ltd. According to market circles, the government may push forward economic reforms if it survives the vote of confidence. There has been a virtual halt in reforms process in the last four years due to strong opposition to reforms from Left parties.