Nifty ends 119 points up on broadbased buying
21 October 2010
Equity benchmarks outperformed global markets on Thursday on the back of buying across all sectors. The Nifty closed above the 6100 mark and the Sensex rallied above 20250 level. The markets bounced back today after witnessing a sell-off since last Thursday barring Monday's marginal upmove.
Ridham Desai of Morgan Stanley feels that the market is likely to continue its upward march in 2011. "Indices are approaching all-time peaks and very naturally investors are drawing comparisons with 2007. The market hit its all-time high in January 2008 before it plunged. But the market and the economy are not comparable to the exuberance of 2007 on most counts. Our base case is none of the risk events of 2008 will happen in 2011 and to that extent, the market is likely to continue its upward march in 2011," he explained.
However, Gaurav Doshi, Vice President, Equity Specialist at Morgan Stanley Private Wealth Management believes the volatility would persist. "We do not expect markets to run away meaningfully in an direction from here. We think it is going to stay in a range and this sort of volatility is going to be part and parcel of the markets. I would say we have just got to brace this volatility because it is here to stay and it is going to continue in the next month or so." "The market has shown that 6,000 as of now is proving to be some sort of a support area for the Nifty," he said.
Heavyweight Reliance Industries was the leading contributor to the Nifty; jumped 3% followed by SBI from banking space with 3.3% rise. In banking & financial space, Axis Bank rallied 3.5%; ICICI Bank, HDFC Bank, HDFC, PNB and IDFC gained 1-2.3%.
FMCG was the leading sector; surged 3% led by ITC and HUL, which were up 3.8% & 4.5%, respectively. Bharti Airtel was the second top gainer on Nifty; shot up nearly 5% followed by Reliance Communications, which rose 2.4%.
TCS was also on buyers' radar since morning, ahead of its second quarter results today evening; went up 2.4%. Wipro and Infosys were up 0.5-1.3% while HCL Tech declined 0.6%. Capital goods space also provided good support to indices; BHEL and L&T moved up 1.7-1.9%, and Siemens rose just 0.44%.