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Udayan Mukherjee, managing editor, CNBC-TV18, says that these are strong rays on Dalal Street. Last two trading sessions have lit up the screen. We are trading at a new 2012 high this morning, nearly at 20-month high. Yesterday the volumes were also at an all-time high.
Udayan Mukherjee, managing editor, CNBC-TV18, says that these are strong days on Dalal Street. Last two trading sessions have lit up the screen. We are trading at a new 2012 high this morning, nearly at 20-month high. Yesterday, the volumes were also at an all-time high.
The excitement is back on the Street and the global markets are also supportive this morning. The December series may start with gains and the market may not have to give up too much at least early in the day. Later in the day, the GDP numbers may move the market.
Below is the edited transcript of his comments on CNBC-TV18.
On 200 points on the Nifty
Nifty looks spectacular. Yesterday, after a long time, the screen felt like a bull market. Some of the largecaps were moving and providing leadership to the index. The bedrock of the broader market was also moving but most impressive were the volumes. Even though it was an expiry day, we saw nearly Rs 4 lakh crore. At one point in the afternoon between that 2 pm and 2.30 pm, when the volumes just kept on souring, one got that feeling of punch in the pit of the stomach.
There was momentum in the market yesterday and there is no question about that. Are we all at the risk of getting carried away here? Could there be roadblock starting with GDP, some hiccups from parliament and the US situation? That is entirely possible, but I think the level of participation is just beginning to pick up here.
Last couple of days, the market has shown a momentum kind of trend or a breakout. When these things happen, market sometimes, tends to go to places where you do not think we will reach in a hurry. I am keeping my fingers crossed for 6,000 sometime in December. If there is no major roadblock in the next few days, I think it may happen sooner than we expect.
On global developments
Global developments are quite supportive. Yesterday the comments, which came in from John Boehner were not very supportive, it sort of doused expectations but that one expects to see over the next four weeks. There will be lot of to and fro, lot of posturing, people will take hard stances but that is part of any bargaining process. We have seen it in our parliament as well. I do not think the market is setting too much store by that.In fact if one looks at the price action in the US, it is suggesting that some resolution will happen by December.
This is not a price action of the market, which has a fear that we are about to fall off a fiscal cliff; the currency markets are also not suggesting that. Although we should be open to some kind of negative surprise, if that happens. For now, even the global markets seem to be in good shape for a year-end rally. Surprises can always happen but I do not think that is the base case which markets are focusing on today. At least it did not appear like that yesterday.
On currency market:
It was not a spectacular pullback in currency market but ninety paise-one rupee in a single day is quite a bit. It is partly because of the flows in the last couple of days which have been very strong. There are also expectations of what might happen from New Delhi, all these things which are floating around in the environment like Goldman Sachs saying you might make 15 percent from stocks next year, so India is not in such a bad place. Moody’s is singing a slightly different tune. All of these aid the currency a little bit. So, I am not as surprised that we pulled back a bit yesterday.
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23784.22 1,228.13 5.44%
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See rupee at 60-61/ $ in short to medium term: ICICI Bank