The stock markets set another record today on the back of solid institutional buying driven by robust economic growth and strong momentum in other regional bourses. The Sensex gained 130 points to end the day at 9,263.90, while the 50-share Nifty ended at 2,812.30, up 36.10 points. | |
| Foreign portfolio investments continued unabated with the total FII flow into the country topping $9 billion at the last count. So far this month, foreign institutions have poured in $403 million (Rs 1,819 crore). |
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| According to market experts, there is lot of money coming in from Japanese funds. A recent India dedicated fund launched by Merrill Lynch with a target corpus of $750 million is said to have got a huge response. |
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| Morgan Stanley is also set to launch an India fund in Japan this month. Domestic mutual funds have, however, been on the selling side this month with net sales amounting to Rs 611 crore. |
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| The sound growth in the GDP for the second quarter had only made players more confident of the sustainability of the earnings growth. |
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| The sentiments in other regional markets were also positive with fears of high international crude oil prices, rising inflation and interest rates being less pronounced now, said a dealer with a foreign broking firm. |
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| But, based on the valuations, India continues to be one of the most expensive market in the emerging markets basket. Currently, the Sensex commands a price-earnings ratio of 17:40 based on trailing 12-month earnings. |
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| Most foreign brokerages have a neutral or an underweight rating of India. |
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| Although the markets are stepping into uncharted territory, technical analysts are not anticipating any serious fall. "The market is testing new levels and can see corrections intermittently," said a technical analyst. |
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| Despite the robust gain in the Sensex, one disturbing factor today was that the market breadth was weak with losers outnumbering gainers 1327:1162 on the Bombay Stock Exchange. In total, 51.86 per cent of stockS advanced, 45.41 per cent declined and the rest remained unchanged. In the A group, 62 per cent shares rose, while in B1 and B2, 55 per cent and 51 per cent of shares fell, respectively.. |
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