The Indian stock markets have risen for three consecutive days in a row as foreign institutional investors (FIIs) turn buyers again and quarterly results of the BSE companies bring cheer to investors.
The 30-share Bombay Stock Exchange (BSE) Sensex rose 88 points or 0.43 per cent while the broader Nifty gained 25.65 points or 0.42 per cent on Wednesday.
Over the past three days, the Sensex has gone up from 20,367 points on Monday to 20,723 points on Wednesday, clocking gains of 1.8 per cent or 0.6 per cent a day on an average.
Commenting on this development, Manish Sonthalia, senior vice-president and head of equities and portfolio management services at Motilal Oswal Financial Services Ltd said, “The quarterly results season is over and we have compiled data that shows there has been a 13 per cent rise in sales of the Sensex companies - except BPCL - and a 14 per cent increase in net profit for the third quarter. That’s a good enough reason for cheer”.
Sonthalia pointed out that there were other factors such as the outflows from emerging markets slowing down in the first two weeks of this month. FIIs are now turning buyers, he said.
Besides, the rupee is more stable and the possibility of the NDA getting 210 to 230 seats is increasing compared to 180 seats earlier, Sonthalia added. The stock markets have been hoping for a BJP win in the forthcoming elections.
Going forward, marketmen are looking forward to FOMC meeting minutes that will be released on Wednesday night to gauge how the withdrawal of the fiscal stimulus by the Federal Reserve will take shape.
The markets, however, are not enthused by the sops given by the government to sectors like auto and power. “The Budget was a total non event and today we saw profit booking in the auto stocks that slid during market hours,” said Angel Broking’s fund manager Phani Sekhar.
“FIIs have been investing in India for 10 years and that trend continues. All eyes are now on the change of guard at the Centre and opinion polls are showing that the opposition is gaining ground. We think that the Sensex is going to touch 24,000 points by the end of the year,” said Saurabh Mukherjea, CEO of institutional equities at Ambit Capital.
On Wednesday, the rally was led by the information technology stocks and the IT index on the BSE was up by 1.48 per cent while the TECK index closed higher by 1.22 per cent.
The 30-share Bombay Stock Exchange (BSE) Sensex rose 88 points or 0.43 per cent while the broader Nifty gained 25.65 points or 0.42 per cent on Wednesday.
Over the past three days, the Sensex has gone up from 20,367 points on Monday to 20,723 points on Wednesday, clocking gains of 1.8 per cent or 0.6 per cent a day on an average.
Commenting on this development, Manish Sonthalia, senior vice-president and head of equities and portfolio management services at Motilal Oswal Financial Services Ltd said, “The quarterly results season is over and we have compiled data that shows there has been a 13 per cent rise in sales of the Sensex companies - except BPCL - and a 14 per cent increase in net profit for the third quarter. That’s a good enough reason for cheer”.
Sonthalia pointed out that there were other factors such as the outflows from emerging markets slowing down in the first two weeks of this month. FIIs are now turning buyers, he said.
Besides, the rupee is more stable and the possibility of the NDA getting 210 to 230 seats is increasing compared to 180 seats earlier, Sonthalia added. The stock markets have been hoping for a BJP win in the forthcoming elections.
Going forward, marketmen are looking forward to FOMC meeting minutes that will be released on Wednesday night to gauge how the withdrawal of the fiscal stimulus by the Federal Reserve will take shape.
The markets, however, are not enthused by the sops given by the government to sectors like auto and power. “The Budget was a total non event and today we saw profit booking in the auto stocks that slid during market hours,” said Angel Broking’s fund manager Phani Sekhar.
“FIIs have been investing in India for 10 years and that trend continues. All eyes are now on the change of guard at the Centre and opinion polls are showing that the opposition is gaining ground. We think that the Sensex is going to touch 24,000 points by the end of the year,” said Saurabh Mukherjea, CEO of institutional equities at Ambit Capital.
On Wednesday, the rally was led by the information technology stocks and the IT index on the BSE was up by 1.48 per cent while the TECK index closed higher by 1.22 per cent.
