JOIN US“The market will continue its upward momentum driven by fundamentals and liquidity. However, volatility would be high as the US dollar is still not taking any definite direction,” Unicon Financial Chief Executive Gajendra Nagpal said.
Marketmen added that with the government reaffirming its reforms agenda through PSU stake divestment, investors are optimistic that the valuations of their portfolio, which also comprises state-run firms, would increase in the coming days. Traders belive that at present the market is optimistic about the economy driven by growing industrial production data. The country’s industrial output rose 9.1 per cent in September 2009.
The bellwether Sensex surged 4.27 per cent to 16,848.83 points past week and the NSE’s Nifty ended at 4,998.95 points. SMC Global Vice-President Rajesh Jain said: “There is ample liquidity in the system... At this time cautious, bullish optimism is prevailing in the market.”
However, analysts cautioned that markets have reached a level where-in a slight negative news can bring in correction. Further analyst said, they are hopeful that foreign institutional investors would keep pouring money into the India growth story. Last week the FIIs invested a net Rs 2,673 crore in equities. Meanwhile, the Wall Street ended in the green on Friday with the Dow Jones Industrial Average moving up 0.72 per cent at 10,270.47. Besides, S&P 500 index gained 0.57 per cent at 1,093.48 and tech heavy Nasdaq stood at 2,167.88, up 0.88 per cent over previous close.