Posted By : Kishore B.S
“Expect the unexpected” seemed to be the markets today. After the negative opening and largely negative sentiments in the minds of the market participants, the markets rose rapidly during the noon session to close near the days high and very near to the yesterdays high.
However the Indices failed to cross yesterdays high of 5024 successfully though it did make some attempt to cross it over. The futures also added some auro by shedding its discount witnessed for the entire last month to tread on the premium segment by the end of the session.
Most of the analysts were fretting out that the IIP numbers that were released today would mirror the sentiments raised by the S&P yesterday thereby giving the bearish outlook some power to claw the Indices back to the sub 5000 levels and also end the bull rally initiated from the start of the month.
As the start of the Idiom of the article states the markets defied all the views and continued its bull run to reach yesterdays high and also state that the bull rally was not yet over and the sparks are still intact. The EURO markets provided the ammunition by trading the positive zone for the indian Indices to blaze all round.
The flat IIP data set the tone that the RBI and Govt would surely step in now with measure to support the faltering Growth of the Economy with likely cut in excess of 50 bps and also incentives to boost the economy since the rumors are rife that Mr. Pranab would retire to the RAISINA Hills and Mr. Singh would be back at the helm of the FM, and do the miracles witnessed during the 1991 again.
It only remains to be watched whether the prophecies would turn true, which would be confirmed tomorrow if the Indices stay afloat and crossover the 5190 levels or get influenced by the Euro and US markets today which if negative could lead to huge sell off below the 5000 levels.
(Inputs Mr. Hemanth .V, Faculty TA, Stock Market Institute, Bangalore)