Nifty ends at 31-month high on global cues; RIL, SBI lead
06 Sep 2010
Equity benchmarks closed at 31-month high on Monday on the back of uptrend across the globe post better-than-expected US employment data, which indicates some hopes of recovery. The Nifty too slowly marched towards 5600 level, rallying 100 points during the day.
N Jayakumar President of Prime Securities says that the Nifty may rally to 6,000, even 6,200 in the next few months and doesn't see a big fall in the market.
He sees the Nifty trading in the 5,250-5,750 range till October 2010 and feels that it should hold 5,350 in the current liquidity scenario. ''Owing to abundant liquidity in the system, a 5-7% rise in a three-four week period would signal impending correction. This will also be on account of low retail participation and under-investment of investors in India.''
US non-farm payrolls fell by 54,000 jobs in August as against expected decline of 100,000 jobs. Private payrolls gained 67,000 jobs while expectations were 41,000.
"After a string of disappointing numbers, the data last week provided an element of stability and helped increase risk appetite," said Henk Potts, equity strategist at Barclays Wealth. "When you couple that with the outlook for corporates, it looks pretty good."
The dollar slipped and looked poised to test a 15-year low against the yen after failing to retain gains made after US jobs data. The euro rose to its highest in three weeks.
