Monday, May 21, 2007

Nifty hits new highs; more room for upside say experts

The market had an extremely good session inline with its global markets. Nifty created history by closing on anew high. All the Asian indices closed in green. Rally was seen on the back of broad based buying interest.

Except for IT and auto stocks all the BSE sector indices closed in green. Energy, metal, banking, media and FMCG stocks were among the major gainers. Broader markets also participated in the uptrend giving markets an extremely positive breadth and even the turnover was high.

On the results front, SAIL came out with numbers above street expectations pulling other steel stocks higher.

Energy stocks from Reliance stable, Reliance Energy and Reliance were among the top gainers.

The Metal & oil and gas indices have led to this new high and the BSE metal index is up 9% from the February 8 highs. It has; in fact, recovered 29% from the March 16 lows. The BSE oil and gas index is up by 10.5% from the February highs and it has recovered by 24% from the March lows. Moreover, the banking index has recovered by 22.5% from its March lows.

RIL, in the oil and gas sector, is up 17% from the February highs. RPL gas recovered 36% from the March lows. IPCL recovered by 26% from the low.

Though there have been some sectors like the auto, IT and cement stocks that have not performed, the Asian markets' positive sentiment seems to have encougared the Nifty as well.


Read more in
The Moneycontrol article.

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