Nifty crosses 4,000 barrier
Markets: Sensex just 155 points away from 14,000 mark
MUMBAI, DECEMBER 1: With investors on a buying spree, stock indices are going through the roof. The National Stock Exchange’s 50-share Nifty index crossed the 4,000 mark, touching 4001.30, on Friday for the first time in its history, before closing at 3997.60.
MUMBAI, DECEMBER 1: With investors on a buying spree, stock indices are going through the roof. The National Stock Exchange’s 50-share Nifty index crossed the 4,000 mark, touching 4001.30, on Friday for the first time in its history, before closing at 3997.60.
It took the Nifty 10 months and 186 trading sessions to reach this milestone after scaling 3,000 on January 31.
“Nifty’s crossing the 4,000 mark indicates that equities continue to attract fund inflows — both domestic and foreign. This is on the back of strong fundamental economic growth, rising domestic income levels, higher allocation of savings to financial and equity assets and increasing confidence of investors in the regulatory process,” said Kapil Krishan, CFO, India Infoline.
The Nifty index took 186 trading sessions for its journey from the 3000 level to the 4000 landmark.
Meanwhile, the Sensex jumped 148.47 points (1 per cent) to settle at 13,844.78, a record closing. It is now just 155 points away from the psychologically 14,000 milestone. While the Sensex has 30 shares in its basket, the Nifty index is calculated on the basis of 50 leading stocks. The NSE is the country’s largest stock exchange in terms of turnover.
The market sentiment got a big boost after Thursday’s announcement of 9.2 per cent growth in the Indian economy. On Friday, global investment firm JP Morgan increased its GDP estimate to 8.4 per cent from 8 per cent for the year ending March 31. DBS raised its forecast to 8.6 per cent from 8.3 per cent, while Standard Chartered Bank revised its growth prediction to 8.2 per cent from 7.5 per cent.
“GDP growth was ahead of our expectation of 8.5 per cent,’’ Chetan Ahya, Morgan Stanley’s Mumbai-based economist said in a note to clients. “The strong growth appears to be domestic demand driven, which in turn has been driven by debt funded consumption growth.’’
According to fund managers and dealers, sentiment remains bullish due to strong FII inflows and an upward revision in earnings growth by brokerages on the back of strong Q2 results. There is widespread optimism that FIIs may step up buying this month, as allocations are made for calendar 2007. Inflows in 2006 have reached $8.7 billion, compared to a record inflow of $10.7 billion in 2005.
The indices are up by nearly 47 per cent in calendar 2006 so far. From 4,644 on June 23, 2004, the Sensex has galloped 198 pwer cent in less than two-and-a-half years.
“Nifty’s crossing the 4,000 mark indicates that equities continue to attract fund inflows — both domestic and foreign. This is on the back of strong fundamental economic growth, rising domestic income levels, higher allocation of savings to financial and equity assets and increasing confidence of investors in the regulatory process,” said Kapil Krishan, CFO, India Infoline.
The Nifty index took 186 trading sessions for its journey from the 3000 level to the 4000 landmark.
Meanwhile, the Sensex jumped 148.47 points (1 per cent) to settle at 13,844.78, a record closing. It is now just 155 points away from the psychologically 14,000 milestone. While the Sensex has 30 shares in its basket, the Nifty index is calculated on the basis of 50 leading stocks. The NSE is the country’s largest stock exchange in terms of turnover.
The market sentiment got a big boost after Thursday’s announcement of 9.2 per cent growth in the Indian economy. On Friday, global investment firm JP Morgan increased its GDP estimate to 8.4 per cent from 8 per cent for the year ending March 31. DBS raised its forecast to 8.6 per cent from 8.3 per cent, while Standard Chartered Bank revised its growth prediction to 8.2 per cent from 7.5 per cent.
“GDP growth was ahead of our expectation of 8.5 per cent,’’ Chetan Ahya, Morgan Stanley’s Mumbai-based economist said in a note to clients. “The strong growth appears to be domestic demand driven, which in turn has been driven by debt funded consumption growth.’’
According to fund managers and dealers, sentiment remains bullish due to strong FII inflows and an upward revision in earnings growth by brokerages on the back of strong Q2 results. There is widespread optimism that FIIs may step up buying this month, as allocations are made for calendar 2007. Inflows in 2006 have reached $8.7 billion, compared to a record inflow of $10.7 billion in 2005.
The indices are up by nearly 47 per cent in calendar 2006 so far. From 4,644 on June 23, 2004, the Sensex has galloped 198 pwer cent in less than two-and-a-half years.
Source: Indian Express
posted by anandsonline @ Sunday, December 03, 2006
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