Markets trade firm bouyed by upbeat Asian markets on back of expected second round of quantitative easing. The Sensex has risen 74 points to 20,324 and the Nifty has risen 24 points to 6128.
The rally is boosted by strong fund flows from the west where interest rates are near zero. Shankar Sharma, Chief Global Trading Strategist from First Global said, "FIIs will continue to be bullish on India. Selectively, the valuations may look stretched but there are stocks like Tata Motors, which still trades 10-11 times. The index may look stretched at 18 - 20 times, but one does not buy the Index."
Markets will continue moving upwards; Charles Nenner, founder and president, Charles Nenner Research Center said, "We could see some weakness now and if we get a correction, the next leg up will begin from the end of November." Nenner has given a target of 7026 for Nifty by the middle of next year.
Broader markets are trading firm, Midcap and smallcap indices have also risen 0.8% and 1.2%.
Metal stocks are shining, adding to the broadbased rally in Asia. The index has risen 1.5%; Hindustan Zinc is the top gainer, up 2.6%, followed by JSW steel, up 2.3% and Sterlite Industries, up 2.2% and SAIL, up 1.8%.
BSE IT index is a laggard in trade, the index has fallen 0.4% ahead of the IT bellwether Infosys earnings which are expected on Friday. HCL Tech, down 1.1% is the top loser, Mphasis, TCS and Infosys are also trading marginally in the red.
Among invidual stocks reported Cairn Energy CEO quoting that he is hopeful Vedanta deal will close before year end. The Cairn stock has surged 3.1% to Rs 348.
Tata Motors, up 2.8%, followed by Sterlite Industries, up 2.3% and Hero Honda, up 1.8% are the top gainers on Sensex. Bharti Airtel is the top loser, down 1.8%, followed by TCS, down 0.8% and NTPC, down 0.4%.
Market breadth is positive, 2000 stocks are advancing for 824 declining stocks in BSE.
