The Bombay Stock Exchange benchmark Sensex, which has traded strongly and steadily in recent days, rose 133 points to close at 18,799.7 on Thursday — its highest point since January 18, 2008. Experts advise investors to stay away from penny stocks that have gained smartly, and take any correction as a point to invest and consolidate.
The Sensex has risen by 828 points or 4.6 per cent over the past seven trading sessions, though several research firms maintained the markets may see a 10 per cent correction at the levels of 18,000.
"I don't see a reason to worry, the fundamentals remain strong and there are stable inflows which indicate strong market going forward," said CJ George, CEO, Geojit BNP Paribas Financial Services. "However investors need to be careful while picking up stocks and stay away from rumours surrounding gains in penny stocks."
Foreign Institutional Investors have already invested R3,402 crore in 7 trading days of September and a total of R62,784 crore in the calendar 2010 till date, showing their faith in the fundamentals of the country's economy.
While a lot of liquid cash is waiting on the sidelines to enter the market when the correction sets in, experts do not see much to worry with the rise.
{{/usCountry}}While a lot of liquid cash is waiting on the sidelines to enter the market when the correction sets in, experts do not see much to worry with the rise.
{{/usCountry}}"The market is moving on low volatility and is firming up steadily," said Aseem Dhru, CEO, HDFC Securities. "I think they are fairly valued as of now and they will firm up going forward."
Domestic factors are strong, and investors need to watch out only for a small corrections from negative global surprises. "I do not see a sharp fall, and any correction should be seen as an opportunity to invest but only into stocks with strong fundamentals," Dhru said.