Positive global cues, weekly data on inflation and buoyant economic growth all failed to hold the benchmark indices at the psychological level of 20,000 for Sensex and 6,000 for the Nifty. Despite opening at over 250 points, profit booking in some index heavyweights saw the Sensex retrace its gains. Experts say that both the Nifty and the Sensex are facing resistance at these levels and witnessing selling pressure on every rise.
However, market participants appear confident that there is lot of steam left in the market and that it see new levels next week. “Markets will strengthen from these levels rather than correcting,” says UTI Securities head of research Nikhil Thakker. The Sensex ended up 170.13 points, or 0.86%, to close at 19,966. The index hit a low of 19,706.43 in mid-session trade due to selling pressure in heavyweights like Reliance Industries.
However, fresh buying in banking, information technology and realty stocks pulled it back into the positive territory. The Sensex had hit a high of 20,094.56 in morning trade, a tad above 20,064 it had hit intra-day on Thursday. It is yet to close above these levels. The Sensex has gained 362 points in the past one week.
The broader Nifty ended up 19.6 points, or 0.33%, at 5974.3. It touched an all-time high of 6,042.10 in early trade on Friday, surpassing its previous all-time high of 6,027.05 on Thursday.
Most of the Asian markets were up about 1%, barring Hang Seng and Kospi that were down 2.5% and 1% respectively. All the European markets were about 1% up on Friday after Bank of England cut its key interest rate on Thursday by a quarter percentage point to 5.5% amid growing signs of economic slowdown.
The weekly inflation data perked up sentiments, as wholesale price index (WPI) rose 3.01% in 12 months to 24 November 2007, below the expected 3.22%. Last week’s inflation was 3.21% and the corresponding period last year was 5.55%.
He says that even though fund flow from FIIs has not been very encouraging in the past one month, insurance money is coming in regularly. There is a lot of interest in the infrastructure and PSU banking space. IT sector valuations also look reasonable at this point.
Both the BSE mid-cap and small-cap indices were down 0.13% and 0.16%, respectively, indicating that investors are becoming cautious. Market breadth kept moving from positive to negative. At the end of the day BSE saw 1,460 stocks advancing and 1,406 stocks declining.
Traded turnover on both the exchanges combined was Rs 91,232 crore. FIIs were net sellers to the tune of Rs 254 crore while domestic funds net bought Rs 340 crore worth of shares, as per provisional figures on NSE.
Source - The Economic Times
However, market participants appear confident that there is lot of steam left in the market and that it see new levels next week. “Markets will strengthen from these levels rather than correcting,” says UTI Securities head of research Nikhil Thakker. The Sensex ended up 170.13 points, or 0.86%, to close at 19,966. The index hit a low of 19,706.43 in mid-session trade due to selling pressure in heavyweights like Reliance Industries.
However, fresh buying in banking, information technology and realty stocks pulled it back into the positive territory. The Sensex had hit a high of 20,094.56 in morning trade, a tad above 20,064 it had hit intra-day on Thursday. It is yet to close above these levels. The Sensex has gained 362 points in the past one week.
The broader Nifty ended up 19.6 points, or 0.33%, at 5974.3. It touched an all-time high of 6,042.10 in early trade on Friday, surpassing its previous all-time high of 6,027.05 on Thursday.
Most of the Asian markets were up about 1%, barring Hang Seng and Kospi that were down 2.5% and 1% respectively. All the European markets were about 1% up on Friday after Bank of England cut its key interest rate on Thursday by a quarter percentage point to 5.5% amid growing signs of economic slowdown.
The weekly inflation data perked up sentiments, as wholesale price index (WPI) rose 3.01% in 12 months to 24 November 2007, below the expected 3.22%. Last week’s inflation was 3.21% and the corresponding period last year was 5.55%.
He says that even though fund flow from FIIs has not been very encouraging in the past one month, insurance money is coming in regularly. There is a lot of interest in the infrastructure and PSU banking space. IT sector valuations also look reasonable at this point.
Both the BSE mid-cap and small-cap indices were down 0.13% and 0.16%, respectively, indicating that investors are becoming cautious. Market breadth kept moving from positive to negative. At the end of the day BSE saw 1,460 stocks advancing and 1,406 stocks declining.
Traded turnover on both the exchanges combined was Rs 91,232 crore. FIIs were net sellers to the tune of Rs 254 crore while domestic funds net bought Rs 340 crore worth of shares, as per provisional figures on NSE.
Source - The Economic Times
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