Dalal Street finally saw a hint of a Santa Claus rally in the last hour of trade today. After a sombre start the markets picked up steam and finally closed well in the green. The Nifty clawed its way back above the 6,000 mark and closed with a 31-point gain at 6,011. The Sensex raced 90 points ahead to close at 20,073.
Globally, stocks have risen to near two-year peaks as strong economic figures from the US has encouraged year-end buying. The rally in major European and US indices has given investors the best December gains in more than a decade.
Experts are seeing signs of considerable improvement in markets. Jim O Neill, chairman of Goldman Sachs Asset Management said that he is seeing signs of improvement in the US. “People cannot see the big picture for the fear of days all way about Lehman collapse somebody see repeatedly anytime there is little bit of bad news whether it can be Ireland or anywhere, people think we go again and people get scared really quickly and that sentiment persists if you look at real evidences especially if you realise to the US there is a whole host of things showing signs of improvement most importantly the weekly jobless claims which moved down so i think lot of encouraging things going on,” he said. He however added that the EU’s monetary leadership situation is a cause of concern for the markets.
Vikas Khemani of Edelweiss Securities however said the economic macros are probably going to have some amount of overhang on the markets going forward. “My sense is that the continuing high inflation will put pressure on the RBI to continue to increase interest rates and that will probably put pressure for the equities,” he believed.
He does not expect markets to move up significantly from here till the Union Budget. “I do not see a situation where there is a big fund inflow, which can come from the international investors,” he stated.
Globally, stocks have risen to near two-year peaks as strong economic figures from the US has encouraged year-end buying. The rally in major European and US indices has given investors the best December gains in more than a decade.
Experts are seeing signs of considerable improvement in markets. Jim O Neill, chairman of Goldman Sachs Asset Management said that he is seeing signs of improvement in the US. “People cannot see the big picture for the fear of days all way about Lehman collapse somebody see repeatedly anytime there is little bit of bad news whether it can be Ireland or anywhere, people think we go again and people get scared really quickly and that sentiment persists if you look at real evidences especially if you realise to the US there is a whole host of things showing signs of improvement most importantly the weekly jobless claims which moved down so i think lot of encouraging things going on,” he said. He however added that the EU’s monetary leadership situation is a cause of concern for the markets.
Vikas Khemani of Edelweiss Securities however said the economic macros are probably going to have some amount of overhang on the markets going forward. “My sense is that the continuing high inflation will put pressure on the RBI to continue to increase interest rates and that will probably put pressure for the equities,” he believed.
He does not expect markets to move up significantly from here till the Union Budget. “I do not see a situation where there is a big fund inflow, which can come from the international investors,” he stated.
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