Sensex soars 1373 points in 2 weeks; financials, oil & gas lead

Equity benchmarks staged stunning performance for the second consecutive week barring Thursday's marginal sell-off, led by strong inflow of funds from foreign institutional investors (FIIs) - the Sensex added 1373.32 points and the Nifty 405.55 points.

FIIs were net buyers to the tune of Rs 11,500 crore in the month of September till September 16, including previous day's provisional figure though domestic institutional investors were net sellers of more than Rs 3,500 crore.

The outlook for liquidity still continues to look good, says Sanjiv Patni, President & Head - Institutional Equities at Prabhudas Lilladher. "Liquidity will continue to chase India and Indian stocks primarily because India still continues to look relatively better than almost all the other markets right now."

Ashu Madan, President Equity Broking, Religare Securities says considering the short covering and the technical position in the market, it can charter much higher territory from the current levels also.

Robert Parker of Credit Suisse sees emerging markets outperforming the developed nations in the next three-six months but believes India may outperform China and Brazil.

The overall undertone remains strong and the flows are continuously supporting the market, says Sanjiv Patni. Henceforth he, however, sees a much more volatility primarily because markets are hitting their valuation non-comfort zone. "Markets are getting into a territory where most of it is driven by flows and not really as much because the growth is looking very good."