Sensex ends 153 points up; financial, tech, metal, FMCG lead
15 Nov 2010
Equity benchmarks strengthened in last couple of hours after a consolidation as well as sell-off since previous week - the benchmark Nifty closed above 6100 level on Monday and the Sensex added more than 150 points, led by buying in financial, technology, FMCG and metal companies' shares. A short covering after a sell-off in last week was another reason behind this bounce back.
Apurva Shah of Prabhudas Lilladher expects the markets stabilizing more or less at these levels in near term. "I am not expecting any great movements over the next 10-15 days. I do think that we will once again start seeing inflows and looking better from December onwards. So in the near term I think we will stay more or less at these levels but I believe from December end and even going into January we will see a stronger market."
N Krishnan of CLSA said that fund managers are still looking to deploy money at current levels as consumption story is still seen to be strong in India.
On the other side, the sell-off in Reliance Industries, NTPC, HDFC, Jindal Steel, DLF, Maruti, Ranbaxy, Reliance Communications along with cement and Anil Dhirubhai Ambani Group (ADAG) companies' shares limited the gains to some extent.
The 30-share BSE Sensex closed at 20,309.69, up 152.80 points or 0.76% and the 50-share NSE Nifty rose 49.95 points or 0.82% to settle at 6,121.60. The Nifty futures closed at 13 points premium, as per provisional data.
However, Krishnan is cautious on the markets due to high commodity prices. He is also concerned that the European debt crisis could cause accident in markets. According to Krishnan, there will be no triggers for re-rating markets in short term.
