Money on the markets

A maturing market amid the mayhem

Sensex climbs 5.1 pct, expiry watched

March 23, 2009

The Sensex ended 457.34 points up on Monday after a fresh plan to clean up the U.S. financial sector set off a strong rally across Asia.

Gains were led by Reliance Industries which rose 7.5 percent, NTPC (up 3.4 percent), ICICI Bank (up 7.3 percent) and Housing Development Finance Corp (up 8.4 percent) led the gains.
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The U.S. government, in its latest move to rescue the economy from the clutches of a deep recession, has introduced a $1-trillion plan to rid banks’ balance sheets of bad loans and securities.

The Banking Index was up 6.6 percent on overall improvement in investor sentiments, while the Oil & Gas Index rose 6.4 percent on hopes of a recovery in the U.S. economy as crude oil prices rose toward $53 a barrel.

Tata Motors was up 3.2 percent at 166, ahead of the launch of the ultra low-cost “Nano”.

The 50-share NSE index ended 4.7 percent up at 2,939.90.

The top benchmark gainers included Ranbaxy, which rose 10.8 percent, Reliance Industries, which gained 7.5 percent, and Tata Steel which was up 10.39 percent.

FII data showed a positive net investment in equities of $12.3 million, while a net selloff was seen in debt of $39 million. Foreign funds have sold a net of $1.9 billion worth of shares so far in 2009.
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The U.S. government’s move has certainly cheered investors globally, but there are still doubts over private sector participation and questions about who will end up paying the most for the clean-up.

Do you think the market will be able to sustain the current momentum or will it pare today’s gains ahead of the March derivatives expiry on Thursday?

Comments

Sensex gained 457 points(5.10%)to close at 9,424.This rally has been induced by Tim Geithner’s plan to buy out $ 1 trillion of toxic assets in US.Sensex has certainly benefitted from this decision.
Sensex has again crossed the mark of 9,026 where it stood on 26/11.

Sensex is blissfully ignoring all future uncertainities like national elections,fiscal deficit,falling IIP numbers,weakening exports etc.It is expected that mometum built from today’s rise of 5.10% to continue tomorrow.Sensex may rise in initial hours till profit-taking curbs any run-away rise

Posted by A.Kapoor | Report as abusive
 

I think the momentum will be sustained..as the march ends the mutual funds would have by now accumulated a large amounts from investors and will gradually start participating in market..also many companies which have waited for the lowest level of market prices will hurry to buy back their shares as the prices starts to climb up..

Posted by Anitha | Report as abusive
 

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