Sensex to surge 21000 levels by Diwali 2010
The market which declined by 0,67% during last week due to tight monetary conditions is entering the week which also is the Muhurat Trading week on November 5, 2010 The liquidity in the system was absorbed by the over Rs 15,000 crore issue of Coal India Ltd from the Government's stable, which saw a huge response, though retail investors had invested just a tad above 2 times the issue size. During the week, the market has seen the robust results of RIL for the current quarter which was on expected lines. The FIIs and other investors, are flush with funds due to the refunds of Coal India Ltd. According to analysts, this Diwali the Sensex, benchmark index of BSE is expected to touch the psychological level of 21000, backed on the listing of Coal India Ltd.
According to CNI Research Chairman and Managing Director Kishore P Ostwal,"The country's most valued firm Reliance Industries has posted better-than-expected second quarter numbers, which will boost the investor sentiment and lead the market to the 21,000-mark on Diwali. "
Reliance Industries Ltd which had declared the quarterly result on October 30 had posted a robust growth of 27.8% in its net profit at Rs 4,923 crore against Rs 3,852 crore in the posted for the same quarter last year This and the Reserve Bank of India's (RBI's) quarterly review policy on November 2 and listing of Coal India, a PSU, on NSE and BSE on November 4, are the two main factors the market will heavily bank upon, for the expected surge in sensex this Diwali, feel marketmen.
Geojit BNP Paribas Research Head Alex Matthews said.
"It is believed that Coal India will get a healthy listing, which will see the market soaring to tremendous level," 10% of its stake in CIL of Rs 15,000-crore, the IPO from the Government's stable has received excellent response from investors.
The market has already factored in the expected hike in the key policy rates by the RBI at its mod term policy review next week,
The most important reason appears to be the record inflow of foreign funds of over Rs 6.4 billion this month in October 2010 will see the Sensex soaring to dizzy heights this Diwali to lighten the Indian homes. The market closed on Friday at 20032.34 points,
So let us see whether this Diwali Muhurat Trading the Sensex crosses the psychological level of 21000.
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