Sensex posts biggest monthly gains since Sept 2010
31 Jan 2012
The market posted biggest ever monthly gains since September 2010, rising 11.5% led by highest monthly inflow of foreign money since November 2010. The Nifty closed tad below the 5200 mark while the Sensex rallied over 17000 level quite smartly.
Factors that steered the January rally included sharp appreciation in rupee, value buying by institutional investors, rate cut hopes, eurozone progress, better US economic data and Fed's decision to keep rates near zero till the 2014.
The market managed to recover majority of yesterday's losses on Tuesday. The Sensex rose 330.25 points or 1.96%, to close at 17,193.55 and the Nifty moved up 111.95 points or 2.20%, to end at 5,199.25.
Foreign institutional investors have bought more than Rs 10,500 crore worth of Indian equity shares in January - highest ever since the November 2010.
Capital goods, banks, metals and oil & gas led the rally in January as they heavily beaten down in 2011. However, technology sector underperformed due to weak eurozone.
Varun Goel, Head - PMS at Karvy Private Wealth said he would continue to hold his view of 20-25% of gains for the calendar year.
