Markets Cheer New FM

The last fortnight witnessed some very optimistic movement in the market. We, at DSIJ, have been optimistic about the market and the overall strength of the Indian economy for quite some time now. Both the Sensex and the Nifty have moved up by more than four and half per cent to close on a positive note.

However, the corporate results were not responsible for perking up the market sentiment. In fact, as of 7th August, 2012, for the 1578 companies that have declared their results, the topline has witnessed a growth of 17 per cent while the net profits have witnessed a growth of mere 3.62 per cent. Then, what is it that has propelled the market into an upward trajectory? The answer could well be in the appointment of P Chidambaram as the Finance Minister, a decision that is being widely accepted and appreciated by market participants across the board.

All the sectoral indices closed in the green during the fortnight. The last fortnight witnessed some very optimistic movement in the market. We, at DSIJ, have been optimistic about the market and the overall strength of the Indian economy for quite some time now. Both the Sensex and the Nifty have moved up by more than four and half per cent to close on a positive note. The BSE Power index, which remained an underperformer over the preceding fortnight, went up by over five per cent. This was followed by the BSE Oil & Gas Index, up by 4.89 per cent.

The money inflows remained strong, with FIIs pumping in Rs 2934 crore in equities over the fortnight. DIIs too ended in the green, as they invested Rs 306 crore. The light at the end of the tunnel is surely getting brighter.

We maintain our bullish stance on the Indian market, and suggest that our readers accumulate stocks in a staggered manner.