The cyclical December freeze may not be bitter as usual in the equity markets this time around. With the 50-share Nifty of the National Stock Exchange hitting a new all-time intra-day high of 6027 points on Thursday, before closing the day at 5954.70 points, up by 0.25 per cent or 14.7 points, market experts think the usual downtrend witnessed during December may not happen this year.
The Sensex sneaked a quick look above the 20,000-levels to hit an intra-day high of 20064.31 points, before closing the day higher by 0.29 per cent or 57.80 points at 19,795.87 points.
“The usual decline during December may not happen this year. Despite regular outflows, the markets have not shown any signs of weakness, as there has been good buying at any dip. The markets are expected to remain in this zone until the middle of January. That is when new allocations to emerging markets happen and foreign funds start flowing. The markets may witness new highs then,” says Rakesh Mehta, chairman of Mehta Equities.
Last December, the Sensex lost 850 points or 6.2 per cent in the first eight trading sessions, before recovering the most of its loss towards the end of the month. However, this time around, the Sensex has gained 193 points or one per cent in the first four trading days of the month.