After failing to close above the 6,000 level twice in the last one week, the benchmark Sensex finally managed to end the day above the psychological mark at 6016.58 for the 14th time this year on Wednesday.
Market circles feel it’s going to be tough for the Sensex to remain above the level in the coming days. “The market will see selling pressure with every rise from the 6,000 level.
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Otherwise the economic fundamentals will have to show a major improvement for the Sensex to shoot up further. This is unlikely,” said BSE dealer Pawan Dharnidharka.
“The index may not find support at higher levels if the flurry of activity does not increase,” said Kartik Mahadevan, manager-HNI dealing, Cholamandalam Securities.
The Sensex, which closed at 6,016.58 on Wednesday, gained 1076 points in the last 12 months, thanks to huge foreign fund inflows of over $ 6 billion in 2004.
Recording its third consecutive rise, the 30-share BSE Sensex ended 19.88 points higher to settle the day at 6,016.58.
Fourteenth-Time Lucky?
The benchmark Sensex crossed the 6,000 level for the 14th time this year and closed at 6,016.58 on Wednesday. It closed above this psychological level first on January 2, 2004. • Gain in Sensex in the last one year: 1076 points • Rise in market cap in one year: Rs 371,000 crore What’s driving the bulls • Huge foreign fund inflows • Better corporate performance • Higher economic growth • Pro-reform government • Launch of good IPOs
EXPERT-SPEAK The market is being driven by liquidity. The market seems fairly valued at current levels and there does not appear to be much scope for any further sharp upside — Ravi Malani, vice-president, IL&FS Investsmart
