Dalal Street bulls scale new peaks
equity indices closed at all-time highs on Friday tracking continued gains in the rest of Asia, the market ending on a positive note in August after witnessing sharp swings for most of the month.
The Nifty gained 0.3%, or 83.95 points, to close at 25,235.9. The Sensex rose 0.3%, or 231.16 points, to close at 82,365.77. Analysts expect the indices to gain up to another 2% on technical factors but warn against betting on one-sided moves in the near term amid continued concerns that parts of the market might be overheated. The outcome of the rate-setting meetings of US Fed and the Bank of Japan scheduled in September will determine the market direction next month.
«Though the gains have been nominal, the markets are moving higher due to bullishness in the world markets and the lack of negative news in Indian markets,» said Shrikant Chouhan, head of research, Kotak Securities. «Since markets have sustained over 25,000 levels, the Nifty is likely to be at the psychological level of 25,500 in the near term.» FPIs bought shares worth a net ₹5,318.14 crore on Friday, while their domestic counterparts sold stocks worth ₹3,198.07 crore. A chunk of the FPI flows was on account of the rebalancing of indices by MSCI on Friday.
Broader Market Indices
The Sensex gained 1.1% and the Nifty rose 1.5% in August after a rollercoaster month. The sharp swings in the market were triggered by worries about recession in the US and the unwinding of yen-funded carry trade after the Bank of Japan unexpectedly raised interest rates, leading
