The Indian share market is looking to make a good come back as the share index Sensex has went up by 864 points at the end of trading on Thursday. The Sensex stayed at 17,594 after the days trade and the gain was calculated at 5.17 per cent. The sources from the Bombay Stock Exchange are informing that the experts of the Indian economy are expecting the market to go for a stable condition soon. The sources also informed that most of the top 500 companies by market cap on the BSE 500 index rose in value on Thursday and the stocks accounted for nearly 90 per cent of the BSEs market capitalisation.
According to the CIO of SBI Mutual Fund, Mr. Sanjay Sinha, "Todays gains have arrested the sharp fall; it (the market) will consolidate from here on before renewing a stable direction". He also said that though it may be volatile in the short term the long term trend of the Indian market is bullish. However, the sources informed that the market saw more losers than gainers on Thursday as well. According to a source from BSE, the BSE benchmark index gained 685 points in the opening of trading on Thursday and went up by 1,046 points in the intra-day trading. However, the gains came down towards the close.
The Co-Founder and CEO of a private wealth management firm named the Unitis Tower Wealth Advisors, Mr. Nipun Mehta was expressing his views over the markets coming back on track and he cautiously said, "I dont think the market is completely out of the woods as US financial markets may see some more negative news coming in, and to a degree the markets will be on tenterhooks". The other sources from BSE have informed that the Foreign Institutional Investors (FIIs) were yet again the net sellers by Rs 3,021 crore as per the provisional NSE and BSE data. However, the domestic institutional investors were less dominant on Thursday compared to the previous day and they had a net purchases of Rs 1,291 crore.
Mr. Mehta added in this regard, "Margin problem is still not sorted out at the exchange level as the exchanges have been increasing margin with limited period notice. The market is still not out of the woods. However, the corporate results which have been good and on expected lines, havent been factored in adequately enough by the Indian market". The source further said that though the gain came across the sectors, the realty sector gained the maximum of 11 per cent; the power sector gained 9.81 per cent and the oil and gas gained 8.73 per cent. The midcap companies also came back quite strongly and the BSE midcap index was showing a gain of 8.15 per cent at the end of the days trade. However, the small cap index again underperformed in the market with a gain of only 4 per cent.
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| Posted : 1/25/2008 |
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