It was a day of records with the Sensex touching its second highest close since March 25, at 838 points up, the rupee touching a 10-week high against the dollar, and oil and gold tumbling by $3 and Rs 510 respectively.
Oil and gold move in tandem while crude prices and the rupee move in inverse proportion and this was witnessed on Wednesday across the markets. The rally added over Rs 2,50,000 crore to investors’ wealth according to one calculation, and since the Left withdrew its support the investors have recouped close to one-fifth of their total loss of close to Rs 30,00,000 since January 10, when the Sensex had peaked at over 21,000 points. The euphoria of the UPA winning the trust vote and announcing that it will go ahead with reforms and the India-US civil nuclear treaty boosted the Sensex to jump over 600 points on opening on Wednesday. L&T which can be one of the biggest beneficiaries when the nuclear deals will happen, was up by Rs 194.
The Sensex remained high all day and closed just a few points away from the 15,000 mark at 14,942. "The market will cross 15,000 on opening on Thursday and could stay above that if there is no concerted selling," said Mr Ranjit Kapadia, head, research, Prabhudas Lilladher. The frontline stocks as also the mid-cap and small cap stock indices were up, but the star of the day was the Anil Ambani group stocks.
The ADAG group stocks Reliance Capital was up Rs 171, RCom Rs 37, Reliance Power Rs 28, RNRL Rs 16 and Reliance Infrastructure Rs 95. Reliance Industries was not left behind and gained Rs 111 while RPL was up by Rs 11 on news that the case filed by RNRL in the Bombay high court will now be heard on a day-to-day basis. Banking stocks also recovered most of their losses and saw good gains. "The stock market actually celebrated the UPA’s victory as it expects reforms to happen quickly," said Mr Alok Agarwal, head, research, K.R. Choksey Securities and Shares Ltd. "Inflation will come down as crude prices fall," he said.
Will this euphoria driven rally sustain? Mr Agarwal says it would be difficult to sway, but the Sensex will not under perform the global markets. The worrying factor is the monsoons, he said. However Mr Gul Tekchandani, independent equity strategist, said, "Rallys don’t happen for a day. Crude is down, the nuclear deal is on the roll. The shorts will have to cover and the foreign fund managers will have to change our ratings to neutral from underweight, he said. The market turnover was almost back to the days of the boom at Rs 95,860 crore with the F&O sector accounting for Rs 68,010 crore.
Courtesy : www.asianage.com
Oil and gold move in tandem while crude prices and the rupee move in inverse proportion and this was witnessed on Wednesday across the markets. The rally added over Rs 2,50,000 crore to investors’ wealth according to one calculation, and since the Left withdrew its support the investors have recouped close to one-fifth of their total loss of close to Rs 30,00,000 since January 10, when the Sensex had peaked at over 21,000 points. The euphoria of the UPA winning the trust vote and announcing that it will go ahead with reforms and the India-US civil nuclear treaty boosted the Sensex to jump over 600 points on opening on Wednesday. L&T which can be one of the biggest beneficiaries when the nuclear deals will happen, was up by Rs 194.
The Sensex remained high all day and closed just a few points away from the 15,000 mark at 14,942. "The market will cross 15,000 on opening on Thursday and could stay above that if there is no concerted selling," said Mr Ranjit Kapadia, head, research, Prabhudas Lilladher. The frontline stocks as also the mid-cap and small cap stock indices were up, but the star of the day was the Anil Ambani group stocks.
The ADAG group stocks Reliance Capital was up Rs 171, RCom Rs 37, Reliance Power Rs 28, RNRL Rs 16 and Reliance Infrastructure Rs 95. Reliance Industries was not left behind and gained Rs 111 while RPL was up by Rs 11 on news that the case filed by RNRL in the Bombay high court will now be heard on a day-to-day basis. Banking stocks also recovered most of their losses and saw good gains. "The stock market actually celebrated the UPA’s victory as it expects reforms to happen quickly," said Mr Alok Agarwal, head, research, K.R. Choksey Securities and Shares Ltd. "Inflation will come down as crude prices fall," he said.
Will this euphoria driven rally sustain? Mr Agarwal says it would be difficult to sway, but the Sensex will not under perform the global markets. The worrying factor is the monsoons, he said. However Mr Gul Tekchandani, independent equity strategist, said, "Rallys don’t happen for a day. Crude is down, the nuclear deal is on the roll. The shorts will have to cover and the foreign fund managers will have to change our ratings to neutral from underweight, he said. The market turnover was almost back to the days of the boom at Rs 95,860 crore with the F&O sector accounting for Rs 68,010 crore.
Courtesy : www.asianage.com