Markets continue galloping rise

The markets continued their rally from the galloping rise on Tuesday when it gained 453 points. The Sensex rose 399.54 points in a rally that vaulted the index up by 2.88% by the end of day’s trade closing at 14253.24. Realty was up 7.98% and Metal 5.67%. IT was a laggard, going up by 0.62%. The Nifty rose by 122.10 points, up 2.97% to close at 4233.50. Reliance Power (closing at Rs. 164.65) and Hindalco (closing at Rs.79.60) were the top gainers of the day notching up 8.57% and 8.15% respectively.

Optimism seems to be returning amongst market participants. “..there is emphasis from the Government on aggressive focus on growth concerns which is positive for the market. If the market starts hearing on the role of foreign capital/liquidity to be a catalyst process, then there is good possibility of restoration of bull-phase,” said  J. Moses Harding Head – Global Markets Group at IndusInd Bank

Infosys (closing at Rs.1791.65) and Ambuja Cement (closing at Rs.99) were the only losers of the day. They dropped 1.11% and 0.85% respectively. The midcap and the smallcap indices went up 4.15% and 4.56% respectively. The pre-budget highs are within touching distance now, say experts.

“If there are no disappointments in the policy, there should be a quick visit into pre-budget level of 14900-15100 (4420-4480) for stability within 14000-15000 (4150-4450). So, investors can play for this short term game with buying dips into 13500-13650 (4000-4050) with tight stop at 13400/3970 or add the second lot at 13200-13350 (3920-3965) with stop below 13000/3850,” said J Moses Harding.