It's bulls for now!
Mumbai, June 17 (UNI) After suffering the five weeks of ignominy, two consecutive rallies by the Bombay Stock Exchange (BSE) Sensex have brought back the hope in the minds of the investors, albeit with scepticism, if they wish to see a long-term stability in the offing! The markets, according to experts, across the global breadth are facing major corrections, not only due to over-valuation as in the case with the Indian stocks but also due to influencing factors like the weak US economy, high inflation rates and liquidity crunch as in the case of Japan.
Earlier in the week, all the Asian markets including Nikkei, Hang Seng and Taiwan were down in the red due to the global pressures as the liquidity was sucked.
Even the US market was down, however, it is expected to stabilise as Federal Reserve Chairman Ben Bernanke has toned down on the issue of US inflation, saying, expectations of price increases had 'fallen back somewhat' and that the impact of high energy prices on the US economy has been limited.
Besides, the state governments accross India like Andhra Pradesh, Tamil Nadu and Maharashtra have reduced the sales tax on the hiked fuel prices, which would advertently bring down the cost of petrol and diesel in these states. Also, it might have some impact on the prices of oil and gas stocks on the Sensex, the experts concur.
Yesterday, most of the stocks on the Sensex closed in the green led by TISCO, which was up by 11.66 per cent. It was followed by TCS, Satyam, Infosys, L&T, Maruti, NTPC and HLL, all were up between 1.5-8.5 per cent.
Scrips of metals, IT, auto, and telecommunications surged in the final rally.
However, largely on the day of gains some of the losers on the index were ACC, Grasim Industries, Gujarat Ambuja, HDFC, ONGC, HDFC and SBI, all down by 0.5 to 3.5 per cent.
The Sensex jumped to 329.4 points on Friday in the intra-day trade to close at 9,884.5 points.
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