The Telegraph
Since 1st March, 1999
Email This Page
Nifty stars in market march

Mumbai, Dec. 1: The Nifty breached the 4000-mark today for the first time before settling at a historic 3997.60 points.

A robust 9.2 per cent GDP growth, a rally in the automobile scrips and a smooth rollover in November contracts to December series saw the sensex striking an all-time high and inching closer to the 14,000-level on a day when the Asian markets traded mixed.

“Although there is a feeling of being left out on the streets and lots of scepticism in the markets, the indices continue to rally based on strong economic growth and other favourable cues in various sectors. Also, the inflation figures did not come as strong as the market had expected,” said Manish Sonthalia, vice-president (equity strategy) of Motilal Oswal Securities.

The National Stock Exchange’s Nifty started the day on a strong note of 3955.70 and pierced the historic intra-day peak of 4001.30 at the fag end of trading, before closing at a new high of 3997.60, a steep rise of 43.10 points, or 1.09 per cent, over yesterday’s close of 3954.50.

The nifty has taken 166 days to move from 3500 to 4000. It has taken 212 days to breach the 4000-level from 3000. Some of the scrips that actively contributed are Reliance Industries, ONGC and ICICI Bank.

Meanwhile, the sensex is just about 150 points shy of 14000. The 30-share index opened firm at 13729.67 and gradually moved up to an all-time trading peak of 13857.81, before ending at a new high of 13844.78 — a rise of 148.47 or 1.08 per cent over Thursday’s close of 13696.31.

Auto stocks were the most sought after following a substantial growth in November sales figures. The BSE Auto index jumped 150.92 points, or 2.84 per cent, to 5472.77 from its last close of 5321.85.

“With lots of money pouring into the country, there are always some buyers for every seller. Also, there are various instances of sector rotation in the market, which is providing it the pace,” said Sonthalia.

The mid-cap stocks, which had failed to keep up with the market, have also started to gradually move, he added.

“While it is difficult to predict a correction in the market, it should always be looked upon as fresh buying opportunity at these levels,” he said. According to analysts, the Nifty has support at levels of 3850, while for sensex it’s 13200.

The market breadth was highly positive with 1,514 gainers against 1,064 losers on the BSE. The trading volume was, however, relatively low at Rs 4,484.62 crore from Rs 4,853.70 crore yesterday.

The rupee also recovered today against the dollar and ended at 44.66.

Email This Page