Mkts could see 250-300 point upside: Experts

12409 Investors following Bajaj Holdings. Share this News with them.

0

Like this story, share it with millions of investors on M3

Mkts could see 250-300 point upside: Experts

Markets got off to a great start, with indices hitting all-time highs, soon after opening bell. A bout of harsh profit-booking pushed indices into the red; but they recovered, helped by fund buying in blue-chip stocks, to close firmly in positive territory.

Post your opinion here

 

0

Tweet

Share on Tumblr

Excerpts from Closing Bell on CNBC-TV18 Watch the full show » ALSO READ See what other experts are saying about markets See what FIIs are saying about the markets See what Udayan Mukherjee is saying about the markets Bajaj Holdings BSE | NSE 25/05/12 Are Mutual Funds betting on Bajaj Holdings? Other Stocks in this news Bharat Heavy Electricals | GAIL India | HCL Technologies | Hero Motocorp | ITC | Maruti Suzuki India | NTPC | Oil and Natural Gas Corporation | Reliance Capital | Reliance Communications | State Bank of India | Tata Power Company | TVS Motor Company |

Markets got off to a great start, with indices hitting all-time highs, soon after opening bell. A bout of harsh profit-booking pushed indices into the red; but they recovered, helped by fund buying in blue-chip stocks, to close firmly in positive territory.

The markets ended in green, with moderate gains, on account of buying support from the host of energy stocks. Oil & gas , power were among the performers of the day.

The breadth was also positive, as the midcap and smallcap indices have outperformed the benchmark indices. Oil & gas stocks, like ONGC and GAIL were up and power stocks like NTPC and Tata Power have surged. Pharma stocks were also trading smart on the bourses. ADAG Group stocks like Reliance Capital surged yet again. 

IT stocks were under pressure due to ongoing appreciation in the rupee. Banking stocks were down on the speculation that RBI may hike CRR in near future. Select metal stocks were also down.

NTPC , ONGC, Reliance Communication s, Tata Power and GAIL were among the major gainers on the indices. SBI , BHEL , HCL Tech and ITC were among the top losers on the indices. 

Select auto stocks recovered from its lows today, on the back of good auto sales numbers in the month of September. Hero Honda's September sales were at 3.14 lakh units versus 2.4 lakh (MoM). Bajaj Auto September sales were at 2.32 lakh units versus 1.96 lakh units (MoM).  Maruti and TVS has also announced good numbers today. 

The Nifty closed 40 points higher, at 5,061, and the Sensex closed a handsome 18 points higher, at 17,309.

Shahina Mukadam , Head-Research, IDBI Capital Markets said that the sentiment in the market remains positive. She added that there might be an upside of 250-300 points.

"The market sentiment remains very positive. I still see another 250-300 points upside. But at the same time, one needs to take profit booking wherever the stock prices have rallied up and sometimes, where the prices have moved far ahead of earnings. The Fed cut, to an extent, had a very positive reaction across the globe and definitely on the Indian markets," said Mukadam.

According to her, in the shorter-term, it is becoming a liquidity driven market and there could be new highs. "This is becoming, at least for the shorter-term, a liquidity driven market. Let us assume that for FY08, we are able to do a Sensex earnings of around Rs 850; we are still at around 19-20 times those multiples. If you start looking at '09 earnings, there would definitely be interest again. Considering the liquidity flow and interest in emerging markets, which is likely to continue, I do not see too much of a downside. There could be minor corrections, but I definitely think we are going to see newer highs," observed Mukadam.

Nilesh Vasa of CD Equisearch said that the market is meant for excesses. Vasa added that if there was negative news about politics, earnings or a global hiccup, there could be tremors. 

"Market is meant for excesses, that is how they sell. You cannot find liquidity; it is something, which has been gushing in for the last few days. One should accept that fact and move on with that. But then, there is no point trying to hazard a guess, when liquidity will actually start receding back and the impact of that. If there is some negative surprise, whether it is related to politics, earnings or some global hiccup, there could be a tremor. Otherwise, till the party is on, I do not see much problem and liquidity is something that one has to actually follow and accept ultimately," said Vasa.