Sensex kisses 20,000, may not rise much more
The 30-share BSE Sensex on Wednesday touched the psychological mark of 20,000 after a gap of more than three months before closing marginally lower at 19,990.18 on heavy buying by foreign institutional investors. HT reports. Stocks zoom, but hold the bubblybusiness Updated: May 09, 2013 02:44 IST
The 30-share BSE Sensex on Wednesday touched the psychological mark of 20,000 after a gap of more than three months before closing marginally lower at 19,990.18 on heavy buying by foreign institutional investors (FIIs) and positive global sentiment but analysts cautioned retail investors against exuberance.
The rally was led by fast moving consumer goods companies, healthcare, bank and oil & gas companies. Stocks of auto makers, capital goods and power companies, however, fell.Experts said retail investors should carefully research stocks and invest only after conducting thorough due diligence.
Deven Choksey, managing director, KR Choksey Securities, a leading broking firm, felt the market as a whole may not gain much from this point. "The rally is fuelled more by trading money than real investment and is, therefore, unsustainable," he said.
A broad section of analysts that HT spoke to advised retail investors to invest in stocks via mutual funds.
Housing financier HDFC (up 3.8%) and cigarettes to hotels conglomerate ITC (up 2.2%) posted the highest gains while Bharti Airtel ( down 1.8%) and Hero Motocorp ( down 1.7%) were the major losers.
The broader 50-stock NSE Nifty closed 0.43% or 25.75 points higher at 6,069.3.
"It will be difficult to sustain the current rally. The market's future direction will depend on a host of factors including RBI's policy decisions, performance of the corporate sector and political stability," said Jagannadham Thunuguntla, chief strategist, SMC Global, a brokerage firm.