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Stocks rally on foreign investment inflow, Sensex hits 6-month high

Analysts pointed out to the Nifty chart when elections were announced in March 2009 and 2014, and the ensuing rally through those two years leading to a substantial upside.

Published: 12th March 2019 01:37 AM  |   Last Updated: 12th March 2019 09:02 AM   |  A+A-

By Express News Service

MUMBAI: Buoyed by foreign investment inflows, Indian markets on Monday threw to the wind all caution about a possible volatile phase — with the country gearing up for a prolonged election period — to start off what can be a potential pre-election rally. Stocks rose pushing the benchmark index Sensex on Monday to close at 37,054.10, the highest level since September 19. Nifty rose 1.2 per cent to close at 11,168.05.

“The sentiment on Indian market has made a dramatic comeback with mid-caps and small-caps having seen two stellar weeks. FIIs have continued their relentless aggressive buying, triggering the pre-election rally. The months of February and March 2019 have seen FII inflows to the tune of `20,000 crore. With the border tensions appearing to have cooled off, and global central bankers turning pro-liquidity, Indian markets are in a risk-on mood,” said Jagannadham Thunuguntla, senior vice-president, Centrum Broking Limited.

Analysts pointed out to the Nifty chart when elections were announced in March 2009 and 2014, and the ensuing rally through those two years leading to a substantial upside. The question is, will the history repeat in 2019, especially after a disappointing financial year for the Indian markets?

“After showing a minor consolidation-type pattern in the last couple of sessions, Nifty witnessed a sharp upside breakout and closed the day on a hefty gain. Nifty has moved above the immediate resistance of its previous high of 11,118 levels (Feb 7) and closed higher. This is positive indication for the Nifty,” said Nagaraj Shetti, technical analyst, HDFC securities.

Traders said there was all-round buying, except for the IT sector, which was affected by Rupee appreciation, and that there was no profit-booking seen even as prices soared. Bharti Airtel, Eicher Motors and oil firms were among the gainers on Monday. Present worries on global economy, rising oil prices, falling GST collection and fiscal deficit issues all took a back seat. Market sentiment has turned positive with INR making gains and on hopes that NDA government will retain power, said Satish Kumar, senior research analyst, Choice Broking.



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