The markets unwounded all the downtrend seen in the last week due to the budget disappointment and clawed back with greater force of bulls. The optimisim on the street this week was on the ground of disinvestment process of the government, which the markets had expected from the first Union Budget 2009-10 of UPA (United Progressive Alliance) government.

R Balakrishnan, Investment Analyst said, “The rain seems to have washed away all the doubts of the budget and also we are hearing all the right noises; there is initial public offering (IPO) buzz. The market is fairly healthy now. The earning season has kicked off quite well. I think most results are strong.”

As per the sources of CNBC-TV18, the government has started the process of divestment in profit making public sector undertakings. Yesterday, they announced divestment of stake in NMDC, which would raise over Rs 10,000 crore in near term.

Ministry of Finance said they would sell shares by diluting stake in NMDC, MMTC, Hindustan Copper, Engineers India and NTPC. They would sell 5-10% stake in each company. There would be more on the cards from the govt, this is just the beginning towards the goal of super power economy.

Positive global cues also supported this rally. The S&P 500 index surged 7% this week. Asian markets also saw strong rally.

Even as the world is looking up to China to lead a recovery from the financial crisis, Stephen Roach, chairman of Morgan Stanley Asia, said India is the country to watch out for. “I love India,” Roach said. “I mean, of all the economies and countries I spend my time out in Asia, the India’s outlook looks terrific right now.” Also Read - Positive on India; world eco still sluggish: Stephen Roach

Buying across the sectors pushed the Nifty close to the 4400 mark and the Sensex towards the 15,000 mark. Both the indices gained around 9% on week-on-week basis. Today, the 30-share Sensex touched an intraday high of 14,800.70, before closing the day at 14,744.92, up 494.67 points or 3.47%.

The 50-share NSE Nifty gained 143.55 points or 3.39%, to settle at 4374.95, after seeing a day's high of 4390.40. The Nifty July futures turned ended with 23 points premium (provisional data). FIIs were net buyers to the tune of Rs 142.15 crore and DIIs net buyers of Rs 535.36 crore in equities today, as per the provisional data.

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