Comments on: Reliance leads Sensex rally http://blogs.reuters.com/moneyonthemarkets/2009/04/02/reliance-leads-sensex-rally/ A maturing market amid the mayhem Thu, 22 Nov 2012 11:50:01 +0000 hourly 1 http://wordpress.org/?v=3.4.2 By: A.Kapoor http://blogs.reuters.com/moneyonthemarkets/2009/04/02/reliance-leads-sensex-rally/comment-page-1/#comment-79 A.Kapoor Sun, 05 Apr 2009 06:52:12 +0000 http://blogs.reuters.com/moneyonthemarkets/?p=352#comment-79 Sensex had a fruitful day on thursday as it rose 446 points(4.51%)to touch 10,348 points.It has risen 701 points(7.2%)in 2009.At 10,348 it has managed to excorcize the ghost of Satyam(10,335). Had Satyam not happened,who knows we could have been already touching 10,600. The sensex movement shows 2 notable rises viz.DLF(+15%) and Jaiprakash(+13.23%. The realty sector is still in doldrums.An unexplicable rise of this magnitude in stocks puts a fear of a "share-price bubble".The realty sector has been window-dressing their quarterly results, and it is being expected that an undo action will be taken in annual results. If more sectors are doing the same,we could end up with some amount of pain. Many investors are asking whether rebound of 2,188 points (26.8%)since 9 March was predictable,and more importantly:What is next in store? Some more immediate upward movement can be expected on account of assurances made at G-20 summit as some of policy decisions may help India's much -needed export thrust. But ofcourse April and May months may have in store some exceptional uncertain developments like 4Q results,CPI rise,monsoons,new government formation and overall a slowing economy.If we make a start to tackle these problems,we could be able to hold sensex between 9,500 to 10,200 till post-16 May,and thereafter await a next trigger to 12,000. Sensex had a fruitful day on thursday as it rose 446 points(4.51%)to touch 10,348 points.It has risen 701 points(7.2%)in 2009.At 10,348 it has managed to excorcize the ghost of Satyam(10,335). Had Satyam not happened,who knows we could have been already touching 10,600.

The sensex movement shows 2 notable rises viz.DLF(+15%) and Jaiprakash(+13.23%. The realty sector is still in doldrums.An unexplicable rise of this magnitude in stocks puts a fear of a “share-price bubble”.The realty sector has been window-dressing their quarterly results, and it is being expected that an undo action will be taken in annual results. If more sectors are doing the same,we could end up with some amount of pain.

Many investors are asking whether rebound of 2,188 points (26.8%)since 9 March was predictable,and more importantly:What is next in store? Some more immediate upward movement can be expected on account of assurances made at G-20 summit as some of policy decisions may help India’s much -needed export thrust.
But ofcourse April and May months may have in store some exceptional uncertain developments like 4Q results,CPI rise,monsoons,new government formation and overall a slowing economy.If we make a start to tackle these problems,we could be able to hold sensex between 9,500 to 10,200 till post-16 May,and thereafter await a next trigger to 12,000.

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