Sensex may be volatile but positive sentiment allays worries
The Bombay Stock Exchange's benchmark Sensex, which raced past the 16,000-mark, may see some volatility which may not be worrying as the index would bounce back because of a positive trading sentiment.business Updated: Sep 13, 2009 15:44 IST
The Bombay Stock Exchange's benchmark Sensex, which raced past the 16,000-mark, may see some volatility which may not be worrying as the index would bounce back because of a positive trading sentiment.
"There is going to be a certain amount of volatility in the market (in near-future trading sessions) and the index may lose some points. But even if it loses 200-300 points, I don't think we need to worry because the trend is broadly positive," ICICI Securities Chief Executive and Managing Director Madhabi Puri Buch told PTI here.
Dalal Street's 30-share bellwether Sensex has closed above the 16,000-level consecutively for the past five trading sessions led by hopes of economic recovery due to a revival in the monsoons.
Sustaining a 15-month high, the sensitive index closed at 16,264.30 points on Friday.
Buch said the investment allocation for India from global investors' kitty has gone up as economists projected the country's GDP to grow by a minimum of 6-6.5 per cent.
"There are many fundamental reasons why the Sensex crossed the 16,000-mark. Liquidity position globally is quite strong. Stimulus packages given by the government have started taking effect and there is reduction in risk aversion," she said.
Referring to the luke-warm listing of Adani Power and NHPC, Buch said these shares were rightly priced.
"I think these IPOs were priced rightly. There is strong potential (for stocks) in the power sector. But, if investors
think they have acquired a lottery ticket by buying these shares, then that is a wrong mindset," she said.