Nifty closes above 5200, records 12.5% in 4 weeks
27 Jan 2012
The market staged a stunning performance for the fourth consecutive week led by huge inflow of foreign money that resulted into sharp appreciation in the Indian rupee. Better than expected earnings at home, signs of softening interest rates after RBI's CRR cut, stabilisation in the Europe and gradual improvement in the US economic data helped the Nifty get back above the 200 DMA (daily moving average) of 5,204, rising 12.5% in four weeks. Even the Sensex jumped 11.5%.
Today, the BSE benchmark rose 156.80 points, to end at 17,233.98 and the NSE benchmark moved up 46.40 points, to close at 5,204.70.
Major largecaps and even second line shares have been witnessing value buying in the month of January, as they had beaten down very badly in 2011. Foreign insitutional investors bought more than Rs 9,000 crore worth of equity shares, which resulted into appreciation of 9% in the Indian rupee. The CNX Defty gained 21.5% in January.
Our market is looking better than what it did a few weeks back, says Vibhav Kapoor of IL&FS. Attributing this improvement to a recovering Europe and US situations and better-than-expected corporate earnings at home, Kapoor told CNBC-TV18 that the momentum is likely to continue.
Given the improvements and with interest rates peaking out, hopes of rate a cut have gotten stronger which will aid FY13 earnings. The sentiment is much better, he said.
At 15:04 hours IST : Nifty above 5200 again; rupee appreciates 1.4%
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