The Sensex has been volatile for the past two months and has turned bullish crossing the 7,000 mark.
The Sensex and the Nifty were busy rewriting history once again as the bulls hold their sway. For the past two months the market was on a bullish note. But the investors, particularly the retail investors, are trading cautiously and are waiting for a market correction. The stock markets, which were volatile earlier, are currently in a bullish trend pushing the indices to new heights. Sensex crossed the 7,300 mark on July 12, 2005, gaining a little over 1,150 points, since the index fell to 6,154.44 points in April 2004. While the Sensex posted a lifetime high on July 12, 2005, the Nifty also posted a lifetime high of 2,280.80 on the same day.
The
Sensex turned bullish soon after a settlement between
the Ambani brothers was reached. The Sensex touched
the magical 7,000 mark on June 20, 2005, primarily on
the strength of a huge rise in Reliance Industries and
Reliance Energy stocks. The bull phase is also due to
the inflow of FII and also due to the favorable economic
conditions in the country. In 2004, FII investments
crossed $9 bn, the highest in the history of Indian
capital markets. The total net investment for the year
up to December 29 stood at US$9,072 mn while foreign
investors pumped in about US$2,113 mn in December 2004
alone. |
