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Journalism of Courage
It is time to rejoice and enjoy the rally for short-term traders and investors,say analysts. Equity benchmark Sensex continued its rally for the fifth consecutive week,closing at 20445.04 on Friday,up 399.86 points or around 2 per cent compared to the same period last week.
And the frenzy in the stock market is unlike the one witnessed during 2007 when markets reached 20,000 mark in October due to aggressive buying by funds ahead of US Federal Reserve meeting. Investors did not expect a fall in 2007. However,the euphoria this time is one full of caution,says Jagannadham Thunuguntla,strategist and head of research,SMC Global Securities.
The 50-share Nifty also rose 125.1 points to close at 6143.40.
During the week,the Sensex got a boost driven higher by the metal and realty sector,which performed well and gained 5 per cent each. Similarly,capital goods,auto and bank were also up by almost 3.7 per cent. In the metal sector,SAIL rose by 8.2 per cent while Hindalco rose 7 per cent and Tata Steel gained 5.8 per cent.
The sustained momentum of foreign capital inflows or FIIs led to a spurt in the markets,which gained its highest on Friday last week since January 2008. The government has also raised its cap on FIIs thereby facilitating further overseas investments.
Jagannadham said that this calender year more than USD 18 billion FII investments is expected and with a robust liquidity flow,all previous records of FII investment are set to break.
FII money right now is chasing Indian growth story. GDP growth revision by ADB and Goldman Sachs are also an important factor in this, he said.
He said that while lone-term investors can liquidate some of their positions,small-term traders and investors can enjoy the ride. u
It is time to rejoice and enjoy the rally for short-term traders and investors,say analysts. Equity benchmark Sensex continued its rally for the fifth consecutive week,closing at 20445.04 on Friday,up 399.86 points or around 2 per cent compared to the same period last week.
And the frenzy in the stock market is unlike the one witnessed during 2007 when markets reached 20,000 mark in October due to aggressive buying by funds ahead of US Federal Reserve meeting. Investors did not expect a fall in 2007. However,the euphoria this time is one full of caution,says Jagannadham Thunuguntla,strategist and head of research,SMC Global Securities.
Despite the investors being skeptical,the 30-shares index has breached the psychological 20,000 mark indicating that there is comfortable liquidity position in the market. The market has caught people by surprise on a positive side. People were bearish but it has been a bull run, he said.
The 50-share Nifty also rose 125.1 points to close at 6143.40.
During the week,the Sensex got a boost driven higher by the metal and realty sector,which performed well and gained 5 per cent each. Similarly,capital goods,auto and bank were also up by almost 3.7 per cent. In the metal sector,SAIL rose by 8.2 per cent while Hindalco rose 7 per cent and Tata Steel gained 5.8 per cent.
The sustained momentum of foreign capital inflows or FIIs led to a spurt in the markets,which gained its highest on Friday last week since January 2008. The government has also raised its cap on FIIs thereby facilitating further overseas investments.
Jagannadham said that this calender year more than USD 18 billion FII investments is expected and with a robust liquidity flow,all previous records of FII investment are set to break.
FII money right now is chasing Indian growth story. GDP growth revision by ADB and Goldman Sachs are also an important factor in this, he said.
He said that while lone-term investors can liquidate some of their positions,small-term traders and investors can enjoy the ride.
