Diwali sets in on Dalal Street
BY A CORRESPONDENT
October 14, 2006
The pyrotechnics is on, with more than a week to go for Diwali. Dalal Sreet on Friday saw record the sensitive index soaring to higher levels.
The 30-share benchmark index jumped to a new peak of 12,756.23, after surging past the 12,700 milestone for the first time ever and breaching the previous peak of 12,671.11 of May 11.And, this time around, stock market analysts feel that the market seemed to look more comfortable, as compared to earlier times.
In May as the investors, well almost all of them, had lost big money when the meltdown happened, this week’s rally would result only marginal benefits, analysts believe.
However, the equity investors are basking in the glory of Friday’s fireworks. Diwali has set in a week ahead of schedule for them. During the May-June period, the index saw a drop of more than 30 per cent.
The current rally has also been attributed to a renewed interest in the mid-cap and small-cap stocks. The small investors in the meantime are elated to calculate that if Sensex could sustain the current level, the uptrend could also be sustained. This would mean good times for small and midcap stocks, analysts feel.
Sensex’s Thursday and Friday growth has come following expectations for good Q2 results from the banking and IT sectors. While the banking sector is still undervalued, it is doing good as the pricing power is back with the banks and the hybrid capital could raise the valuation to up 35-40 per cent, feel market watchers. Private and public banks are likely to gain 20 per cent in the coming 12 months, it is predicted.
Meanwhile, IT has has been moving up following impressive results from Infosys. With majors TCS and Wipro expected to join the party, the scene culd well be sustained. Now, experts are on the forefront of affairs forecasting a 13000-mark when the real Diwali crackers would burst.