The Hindu : Business : Samvat 2061 begins on positive note

Online edition of India's National Newspaper
Saturday, Nov 13, 2004

Business

Business

Samvat 2061 begins on positive note

By Our Special Correspondent

A stock trader is excited as the Bombay Stock Exchange sensitive index touched the 6000 mark in Moorat trading in Mumbai on Friday. — Photo: Paul Noronha

MUMBAI, NOV. 12. Ushering in Samvat 2061, the Bombay Stock Exchange 30-share sensitive index (Sensex) today crossed the psychological 6,000-mark in intra-day trading at the Moorat trading, reflecting a positive trend. However, the Sensex ended 9.70 points higher at 5964.01.

On the National Stock Exchange (NSE), the S&P CNX Nifty Index was up 2.40 points at 1872.95. Indicating a broad-based rally, all other indices on the BSE and the NSE also rallied.

The BSETeck was up 7.93 points at 1607.43; BSE 100 by 7.64 points at 3180.51; the BSE 200 by 2.24 points at 782.18; the BSE 500 by 8.53 points at 2439.58; while the BSE PSU improved by 14.82 points to 3810.14 and the BankEx by 1.59 points to 2946.75.

"Last two Diwalis have been very positive and this reflects the underlying positive performance of various companies. However, investors need to be cautious and invest only with a long-term view and through systematic investment plans," said Ved Prakash Chaturvedi, Chief Executive Officer, Tata Asset Management Ltd.

"I think the trend is very clear that in a guarded manner the market is headed for 6300 to 6500 levels by February next", said Devesh Kumar, Head, Equities, ICICI Securities.

Foreign investors active

"Foreign investor interest is strong and the concerns on rise in oil price, inflation and interest rate hike have already been factored in the current index level and if some good news comes on the oil front it will help ease inflationary pressure and the market will gain further strength," he said, adding, "Investors would be looking at fundamentally sound companies across sectors as India offers consumer goods play, knowledge-edge play and infrastructure play at the same time".

"We are certainly positive and bullish on the market over a one to three year horizon," said Tridib Pathak, Chief Investment Officer, Cholamandalam AMC Ltd. "We believe that this is actually a stock selectors' market. It is only certain stocks, sectors, or themes, which will do better than the rest. We may not find a broad-based rally. We are overweight on information technology, cement and certain international cyclicals such as petrochemicals," Mr. Pathak added.

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