Sensex to hit 21,000 mark on Diwali: Analysts
The Bombay Stock Exchange's benchmark Sensex is likely to hit the much awaited psychological level of 21,000 in the next week, driven by the smart RIL numbers and expectations of robust listing of the Coal India IPO, say analysts.business Updated: Oct 31, 2010 12:12 IST
The Bombay Stock Exchange's benchmark Sensex is likely to hit the much awaited psychological level of 21,000 in the next week, driven by the smart RIL numbers and expectations of robust listing of the Coal India IPO, say analysts.
Sensex, which saw a subdued performance last week by shedding 0.66 per cent, mainly on account of tight liquidity, may bounce back by surging over a staggering 1,000 points.
"The country's most valued firm Reliance Industries has posted better-than-expected second quarter numbers, which will boost the investor sentiment and lead the market to the 21,000-mark on Diwali," CNI Research Chairman and Managing Director Kishore P Ostwal said.
On Saturday, Mukesh Ambani-led Reliance Industries had posted a robust growth of 27.8 per cent in its net profit for the second quarter ended September 30, at Rs 4,923 crore against Rs 3,852 crore in the year-ago period.
Besides, the Reserve Bank of India's (RBI's) quarterly review policy on November 2 and Coal India, which will list on the bourses on November 4, are the two big fat issues on which the market will heavily bank upon, feel marketmen.
"It is believed that Coal India will get a healthy listing, which will see the market soaring to tremendous level," Geojit BNP Paribas Research Head Alex Matthews said.
Coal India's mega Rs 15,000-crore IPO has received overwhelming response from investors. Through the issue, the government is divesting 10 per cent of its stake in CIL, the world's largest coal producer.
Corporate India is expecting hike in the key policy rates by the RBI at its policy review next week, which according to marketmen has already been factored in by the Dalal Street.
Meanwhile, the domestic market has also seen a record inflow of whopping $ 6.42 billion of foreign fund during the month of October.
The BSE barometer Sensex had on Friday settled at 20,032.34, higher by 91.30 points, or 0.46 per cent.
On Friday US markets ended in mixed trade, with Dow Jones Industrial Average settling up by 4.54 points at 11,118.49 and S&P 500 fell by 0.52 points at 1,183.26. Besides, tech heavy Nasdaq was down 0.04 points at 2,507.41.