Nifty ends strong for 3rd consecutive day, surges 259 points
28 May 2010
The benchmark Nifty closed strong for the third consecutive day on the back of short covering and positive global cues. The index rallied 259 points in three days and closed above the 5050 level while for the week it gained just 134 points. The most beaten down sectors like metal and realty gained 3.5-4% today.
European markets were trading 0.4-0.8% higher and the US index futures gained just 0.2% each, at the time of closing of Indian equities. Asian markets ended 0.7-1.7% higher barring Shanghai, which was flat. The US markets rallied 3-3.7% on Thursday after a denial by China about possible reviews of European debt holdings.
Keshav Sanghi, MD and Head of Equities of Citigroup was positive on India while he looked cautious about Europe. He explains that markets are far from clarity on the EU and there is anxiety amongst investors. Money is flowing out of Europe into the emerging markets. He says that India is expected to see USD 50-75 bn fund flow in five years.
He adds that macro data indicates appreciation for Indian markets as it seems relatively safer. Confidence in the Indian markets is likely to be higher in six months. India is going to benefit from the slide in oil and commodity prices, he adds further.
The time to go short on India is over, says an optimistic Arvind Sanger of Geosphere Capital. ''At this point, India along with other global emerging markets looks like it's poised to rebound from recent sell-off provided there's no other negative news coming out of Europe.''
The 30-share BSE Sensex closed at 16,863.06, up 196.66 points or 1.18% and the 50-share NSE Nifty rose 63.45 points or 1.27% to settle at 5,066.55. The BSE Midcap Index was up 1.65% and the Smallcap was up 1.4%.
