Comments
There was Diwali cheer on Dalal Street on Monday as key index Nifty of the National Stock Exchange (NSE) closed above the psychological mark of 10,200.
The BSE’s 30-share Sensex too closed at 32,663 and is now just a stone’s throw away from yet another milestone.
Relentless buying by domestic institutional investors (DIIs) pushed stock markets to historic highs, the parallel of which can only be drawn with the year 2000 and 2008 bull runs. Yet there was euphoria on Monday on the back of positive macro data and encouraging comments by the International Monetary Fund (IMF).
Wholesale inflation softening to 2.6 per cent in September from 3.24 per cent in August and exports growing at six-month high rate of 25 per cent in the month enthused investors.
IMF chief Christine Lagarde last week said the Indian economy was on a “very solid track” in the medium term, triggering all-round buoyancy in the market. The rupee appreciating further to 64.68 against the dollar (intra-day) on the forex market too fuelled the rally in stocks on Monday.
Note of caution According to Taimur Baig, Chief Economist, DBS Group Research, complacency was seeping into the markets and ignoring geopolitics could be hazardous for markets. “The current dynamic of modest growth, low inflation, and easy liquidity has left investors so comfortable that the market is hardly pricing in geopolitical risks, despite rising tensions and uncertainties,” said Baig.
“The general view is whether it is North Korea or Iran, Catalonia or Italy, market-damaging outcomes are unlikely given the high stakes involved. Markets typically struggle to price such risks, which is understandable, but complacency in the presence of so many risk points is unwelcome.”
Among Sensex gainers, Bharti Airtel rose 4.96 per cent after the company announced acquisition of Tata group’s loss-making mobile telephony business, almost for free, boosting its spectrum holding and user base.
Other gainers included M&M, Tata Motors, Hindustan Unilever and Sun Pharma. Axis Bank fell by 1.65 per cent and Wipro was down 0.62 per cent.
Among sectoral indices, the telecom index was up 4.23 per cent, the metal index gained 2.02 per cent and healthcare was up 1.24 per cent.
The market breadth remained negative as 1,401 stocks ended in the red, 1,303 closed in the green while 140 ruled steady.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.