Posted By : Kishore B.S
Hi Friends !!!!
The Positive sentiments generated in the US markets yesterday due to the better than expected Service Sector Growth Rate gave the positive momentum for the Global markets today.
On the backdrop of the Positive sentiments our markets opened with a GAP up and the momentum seemed to be fading during the initial hours of the trading session, however the statements by Mr. Kaushik Basu of the Govt plans to the bolster the Economy fueled further positive sentiments.
The markets gained further momentum with the opening of the European markets and rumours and news about QE by the ECB and also the US likely to be announced soon.
The Crisis meeting convened by the PM today to discuss likely measures sent the Infrastructure stocks soaring alongwith the Banking stocks due to the expectations that the Rbi would cut rates further to boost the sagging economy.
This positive phenomenon is likely to continue for another trading session given the surge in indices today, also with the Indices managing to close near the 5000 levels, which has been the resistance zone for quite some time.
(Inputs Mr. Hemanth .V, Faculty TA, Stock Market Institute, Bangalore)