February 29, 2012

Morning Be!!........Sensex rises over 200 points in early trade

The frontline equity benchmarks have surged in early morning trade, with the BSE Sensex closing in on 18,000 milestone and the NSE Nifty surpassing 5450, on the back of all-round buying frenzy. This is the second straight day of strong gains for the Indian markets after falling for four successive sessions from 22nd Feb. to 27th Feb. The upbeat mood is a wee bit puzzling as macroeconomic situation remains precarious and the global backdrop too is not all that confidence inspiring.

After falling sharply on Monday, Indian markets witnessed a smart recovery on Tuesday. Broader markets outperformed the benchmarks led by a sharp spike in infrastructure and PSU banks.

While the BSE Sensex finally closed 285.37pts or 1.64% higher at 17,731.12, the Nifty gained 97.65pts or 1.85% to close at 5,378.85. Broad market indices too ended higher as the BSE Midcap and BSE Small Cap indices gained 3.40% and 2.78% respectively.

Currencies
The Rupee helped by large gains in local stocks, robust capital inflows and easing demand for dollars from oil importers. Forex dealers said weak dollar overseas also aided the rupee sentiment.

Outlook
The Indian Markets could open on a firm note, following positive global cues and consolidate at higher levels throughout the session. Immediate resistances for the Nifty are at 5450-5500. Downside supports are at 5300-5268. Among the sectoral indices, Realty, Capital Goods & Banks continue to look good and could outperform

Sources-IIFL,HDFCSec

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