Domestic bourses may keep rising as long as overseas markets stay firm
The market was range bound throughout the day. The Sensex gained 59 points (up 0.34%) to end at 17,578 and the Nifty closed at 5,262—16 points higher (up 0.32%) over the previous day’s close. The key benchmark started the day with a gain, which was, however, trimmed shortly. The broader market traded at a narrow range throughout the day, touching an intraday low in afternoon trading. It recovered from the low of the day to end the day with a gain.
Yesterday, the Dow Jones Industrial Average closed 45.50 points (up 0.42%) higher at 10,779.17. The Nasdaq Composite ended at 2,391.28, up 2.19 points (up 0.09%). S&P 500 was down 0.38 points (a dip of 0.03%) at 1,165.83. Almost all Asian markets were in the black.
The market may remain volatile in the near term as traders roll over positions in the derivatives segment from the March series to the April series ahead of the expiry of the near-month March derivatives contracts on Thursday, 25 March 2010.
European markets were higher on Friday, led by bank stocks. The key benchmark indices in France, Germany and the UK rose by 0.35% to 0.56%. We were expecting a small dip since the market is in an overbought mode. But the market may keep rising as long as the overseas markets stay firm. Low interest rates continue to attract money into risky assets like equities. The market always takes the path of least resistance and the current path is up—until a big shock comes from somewhere.
In the domestic market today, the biggest gainers were Bharti Airtel (up 3.95%), Reliance Communications (up 1.98%), Hero Honda Motors (up 1.76%), State Bank of India (up 1.42%), Hindustan Unilever (up 1.40%), and Reliance Industries (up 1.37%). Infosys fell 0.47% on profit-taking after hitting an all-time high of Rs2,792.15 on Thursday.
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