With bulls on song, bourses end week on high note

With bulls on song, bourses end week on high note

The popular Sensex at BSE was up 184.17 points or 0.93 per cent to close at 20045.18 points. The bellwether index gained 210.74 points at the day’s high of 20071.75 in late trade and lost 27.49 points at the day’s low of 19,833.52 in early trade. The broader based S&P CNX Nifty at NSE was up 58.75 points or 0.99 per cent to settle at 6018.30 points in the day’s closing.  

As pivotals were down on Wednesday and Thursday owing to profit booking – after recent strong rally which saw market scale their 32-month highs – but FIIs remained net buyers to the tune of around Rs 2,000 crore, which kept the sentiment upbeat in D-Street here.  So much so, FIIs were net buyers to the tune of more than Rs 20,500 crore during September itself and over Rs 59,000 crore since June this fiscal. However, global cues lacked clear direction this day even as US index futures rose, while European markets dropped and then again Asian stocks were mixed.

 Gautam Shah of JM Financial avers that the markets can rise substantially from the current levels.  The BSE Sensex has a strong support at 19,600 level, that of Nifty could consolidate at around 6,300 mark, according to Shah, who at the same time foresees that markets may go through a minor pause in October, which investors could use it as a buying opportunity.  “Investors can use any 2-3 per cent dip now onwards as a buying opportunity,” says he. On the domestic front, the government on the other day (Thursday last) doubled foreign investment limits in government securities to $10 billion from $5 billion and increased the limit for corporate bonds to $20 billion from $15 billion. The move, government believes, will help to raise investment in bonds, infrastructure and develop bond markets in India at the same time as balancing its monetary policy.
FMCG, banking, consumer durables and realty stocks led the surge. Index heavyweight Reliance Industries edged higher in volatile trade.

The market breadth, indicating the health of the market, was strong with as many as 1848 shares advanced while 1149 scrips declined and a total of 88 stocks remained unchanged. The BSE Mid-Cap index rose 1.04 per cent and the BSE Small-Cap index rose 1.05 per cent, both out-performing the Sensex.

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