Tuesday, May 22, 2007 (Mumbai):The markets closed flat on Tuesday with the Sensex ending the day at 14,453 levels after a marginal gain of 35 points or 0.24 per cent.In the broader markets, the Nifty closed at a new all time high of 4,278, a gain of 17 points or 0.4 per cent. It touched a day high of 4,281 levels in intra-day deals.Even though analysts are bullish on the markets, some of them are worried about value in equity markets as investors are overbuying the future growth story.
"We are saying 17,000 plus (for Sensex) by December, 9,000 plus for the BSE small cap index. We are extremely bullish on the markets for the second half of the calendar year," said Amitabh Chakraborty, President, Religare Securities.
"As long as liquidity flows continues the markets continue to do well. As investors we tend to chase growth and ignore value, if we continue to chase growth, markets will become more and more expensive and that is what happening right now," said Rajiv Sampat, Investment Analyst.
"As expected market zoomed up after a breather to close at an all time high on the Nifty, still looks up for a target of 14567 and then maybe an assault an the all time high of 14724.
The support for the Sensex is at 14350 and the resistance to the up move at 14479-14567." said Prakash Gaba
The support for the Sensex is at 14350 and the resistance to the up move at 14479-14567." said Prakash Gaba
HDFC at Rs 1,794 surged 4.4 per cent was the biggest gainer in the BSE 30 pack. Reliance Communications, ACC, BHEL, HDFC Bank and Maruti Udyog were some of the key gainers. However, Bajaj Auto and Ambuja Cements lost over 2.2 per cent each.Amongst the NSE 50 scrips, Zee Entertainment at Rs 312 gained 4.4 per cent ended the day as the biggest gainer in the Nifty. VSNL, Tata Power, Sun Pharmaceuticals, GAIL India and ABB were some of the significant gainers.Capital gainsBSE capital goods index gained 0.56 per cent was the top gainer in the sectoral indices.
FMCG and Healthcare indices were some of the notable gainers.Thermax at Rs 448 gained 6.8 per cent was the biggest gainer in the capital goods space. Gammon India (up 2.1 per cent), Alstom Projects (up 1.6 per cent), ABB (up 1.6 per cent) and BHEL (up 1.5 per cent) were the top gainers.With the news of Coca Cola's bid for Glaceau, buying is visible in the Tata Tea counter surged 4.4 per cent was the top gainer in the FMCG space, Britannia Industries also firmed up by 2.9 per cent.Buying was also visible in healthcare couters with Glenmark Pharmaceuticals (up 2.9 per cent), Divis Laboratories (up 2.5 per cent), Novartis India (up 1.3 per cent), Aventis Pharma (up 1.2 per cent) and Cadila Healthcare (up 1 per cent) leading the positive sentiment.
Ringing gainsTelecommunications stocks gained ground on Tuesday with Shyam Telecom surging 9.9 per cent to end the day at Rs 109. Krone Communications (up 6.1 per cent), Reliance Communications (up 3.3 per cent), VSNL (up 3 per cent) and Bharti Airtel (up 1.1 per cent) were the top gainers in the telecom space.Positive sentiment was visible in the sugar counters with Balrampur Chini Mills, Dhampur Sugar Mills, Dwarikesh Sugar and Ponni Sugars firming up by over 2.4 per cent each.
Media stocks rallied for the second day with the renewed interest in entertainment counters. Saregama India, Mukta Arts, Shringar Cinemas and Zee Entertainment surged over 4.4 per cent each. Tips Industries, Balaji Telefilms and Pentamedia Graphics are some of the key gainers.
