Financial Daily from THE HINDU group of publications
Tuesday, Sep 20, 2005
Financial Daily from THE HINDU group of publications Tuesday, Sep 20, 2005 |
|
|
|
|
|
Home Page
-
Stock Markets Markets - Stock Markets FII, MF inflows power Sensex past 8400 Fall in global crude oil prices triggers upturn Our Bureau
Mumbai , Sept 19 FOREIGN institutional investors (FIIs) as well as domestic mutual funds continued their purchases in Indian stocks driving the BSE Sensex to a record high on Monday. The Sensex crossed the 8,400 level today after opening firm and continuing to rise on all round buying interest. The sustained fall in crude oil prices over the last few days, after it scaled above $70 per barrel last week, proved a major trigger for the market's upturn. Oil prices fell nearly 3 per cent on Friday to close at $63 a barrel. Inflows by FIIs and good investor confidence are helping the stock prices to rise. BSE Sensex closed the day at 8444.84, a rise of 63.88 points (0.76 per cent) and NSE's S&P CNX Nifty closed at 2567.10 points, up 14.75 points from its previous close. The advance-decline ratio was also positive as 1,323 shares gained while 1,297 shares declined on BSE. "Confidence level is very high and informed investors are buying based on projected earnings for 2007 to justify valuation. Uninformed investors (retail) are looking at making a fast buck which has become possible in the past couple of months," said Mr Ambarish Baliga, Vice-President, Karvy Stock Broking. He said the rise in stock prices now is mainly liquidity driven. The increased liquidity in the stock market is seen from the continuous inflows from FIIs and mutual funds. On Friday, FIIs were net buyers of Rs 443.7 crore in equity and mutual funds bought Rs 164.46 crore. This month, FIIs have invested Rs 3,325.80 crore in equity and mutual funds have put in Rs 1,803.33 crore. Most of the broking firms continue to remain bullish with a word of caution to its investors. "Strong momentum continues and there is enough buying that is helping the market sustain its gains and hit new highs. At such high levels, however, short-term volatility will continue to persist and therefore we recommend a selective valuation-based approach and advise caution," said Motilal Oswal Securities in a note to its investors after close of today's trading. Buying by investors who were left out of the rally so far also contributed to the northward movement of stocks, a top official of a broking firm said. "Buying is not based so much on fundamentals as much as on expectation that the stock prices would rise further and that they may not be in a position to buy later," he added. BSE turns cautious
WITH stock indices touching new highs and shares registering unusual price movements, the Bombay Stock Exchange has turned cautious. It has set up a toll-free line to allow members of the public to inform the exchange of any unusual activity in the stock market. On this toll-free line (1600-22-6663) investors can inform the exchange of any specific lead with regard to undesirable trading practices in any scrip or any type of market aberration observed by them. A note put on the exchange's Web site said that the identity of the investor would be kept confidential. The exchange has cautioned investors to follow the dos and don'ts in general while dealing in the stock market as there are attendant risks associated with it.
Article E-Mail :: Comment :: Syndication :: Printer Friendly Page
|
Stories in this Section |
|
The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription Group Sites: The Hindu | Business Line | The Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |
Copyright © 2005, The
Hindu Business Line. Republication or redissemination of the contents of
this screen are expressly prohibited without the written consent of
The Hindu Business Line
|
