Sensex scripts history

ACCELERATING LIKE never before, the BSE Sensex gained 238 points on Monday to crack the 10K barrier in intra-day trading. Finally it ended short, closing at 9,980.

india Updated: Feb 07, 2006 15:20 IST
Arun Kumar

ACCELERATING LIKE never before, the BSE Sensex gained 238 points on Monday to crack the 10K barrier in intra-day trading. Finally it ended short, closing at 9,980.

This is India's longest-running bull orbit, despite the odd glitch since June 2003. “This is a reflection of India's re-rating as an economic force,” says Uday Kotak, vice chairman, Kotak Mahindra Bank. "There might be a cyclical correction but the secular story is in place."

Gul Tekchandani, a leading stock analyst, feels the market fundamentals are strong. "Many of the equities still offer attractive valuations compared to their peers in other emerging markets," he says.

A key reason for the sustained rally in the Indian markets is the radical change in the perception of foreign fund managers.

“The growth story of India Inc is not only credible but also sustainable as we're in the middle of a robust growth cycle,” says a leading banker, adding that the market surge cuts across all sectors with foreign investors optimistic about the country's economic potential.

Interestingly, the Nifty is in the oversold zone to the extent of 30 lakh stocks. Whenever this is squared off, it may push the market further upwards.

First Published: Feb 07, 2006 15:20 IST