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Benchmark indices are poised to scale lifetime highs next week as market participants expect pre-election rally in Indian equities to continue. We firmly believe that this positivity would prevail ahead as we have been noticing exceptional volume in cash segment with rise in prices, which reflects buying interest at current levels. Today, National Stock Exchange's 50-share Nifty ended at record closing high at 6526.65 points, up 125.50 points or 2% from close Thursday. S&P BSE 30-share Sensex too ended at lifetime closing high of 21919.79 points, up 405.92 points or 1.9%.
MCX Stock Exchange's SX40 index settled at 13065.12, up 215.64 points or 1.7%. India Volatility Index or VIX surged 15.5% to 16.72 points. The gains came on growing optimism that Bharatiya Janata Party would gain majority in general elections that will take place in Apr-May. Rising rupee and improving macro-economic data also aided the rally in markets. Expectations of a pro-reform government led to rally in hi-beta sectors such as Banks, capital goods, real estate, infrastructure, and oil and gas. Some administrative steps to boost investments are likely to be adopted by any stable government; and several macro-economic parameters (twin deficits, inflation and liquidity) seem to be in the early stages of recovery.
Larsen & Toubro, which rose nearly 5% to end at 1,198.65 rupees, may raise another 2- 3%. Banks are set to extend gains next week but some market participant’s advice booking partial profits in them after today's rally. However, any correction in Bank stocks should be used as an opportunity to buy. Today, Bank Nifty index ended up 5.4% at 11884.75 points.
Investors will also keep a watch on trends in overseas markets and economic data in India. On global front, non-farm payrolls data for February will be released later today. In India, January industrial production data, and February inflation rate based on Consumer Price Index will be detailed on Wednesday. Among specific stocks, Infotech Enterprises may rise on Monday as the company said its US arm Infotech Enterprises America will acquire Virginia-based Softential for an undisclosed sum.
Benchmark indices are poised to scale lifetime highs next week as market participants expect pre-election rally in Indian equities to continue. We firmly believe that this positivity would prevail ahead as we have been noticing exceptional volume in cash segment with rise in prices, which reflects buying interest at current levels. Today, National Stock Exchange's 50-share Nifty ended at record closing high at 6526.65 points, up 125.50 points or 2% from close Thursday. S&P BSE 30-share Sensex too ended at lifetime closing high of 21919.79 points, up 405.92 points or 1.9%.
MCX Stock Exchange's SX40 index settled at 13065.12, up 215.64 points or 1.7%. India Volatility Index or VIX surged 15.5% to 16.72 points. The gains came on growing optimism that Bharatiya Janata Party would gain majority in general elections that will take place in Apr-May. Rising rupee and improving macro-economic data also aided the rally in markets. Expectations of a pro-reform government led to rally in hi-beta sectors such as Banks, capital goods, real estate, infrastructure, and oil and gas. Some administrative steps to boost investments are likely to be adopted by any stable government; and several macro-economic parameters (twin deficits, inflation and liquidity) seem to be in the early stages of recovery.
Larsen & Toubro, which rose nearly 5% to end at 1,198.65 rupees, may raise another 2- 3%. Banks are set to extend gains next week but some market participant’s advice booking partial profits in them after today's rally. However, any correction in Bank stocks should be used as an opportunity to buy. Today, Bank Nifty index ended up 5.4% at 11884.75 points.
Investors will also keep a watch on trends in overseas markets and economic data in India. On global front, non-farm payrolls data for February will be released later today. In India, January industrial production data, and February inflation rate based on Consumer Price Index will be detailed on Wednesday. Among specific stocks, Infotech Enterprises may rise on Monday as the company said its US arm Infotech Enterprises America will acquire Virginia-based Softential for an undisclosed sum.
