Markets largely driven by liquidity: Experts
The markets have continued the rally for the second day running and it ended near the highest points of the day on the back of heavy buying seen in scrips across sectors. Indices got off to a firm start, and zoomed. They recovered half the losses they had made between Friday and Tuesday.
The banking stocks were back in style leading the uptrend followed by IT, capital goods and oil & gas. The markets have regained almost half of their losses that they made during the three-day downtrend. Midcaps and smallcaps also participated in the uptrend. The Sensex closed up 305.82 points or 2.32% at 13487.16, and the Nifty up 77.85 points or 2.07% at 3843.05.
Dilip Bhat, Prabhudas Lilladher says that the markets have reached such a stage where a lot of people are on the edge at the moment. The markets have been largely driven mainly by the liquidity surge.
“Markets are on such a cusp at the moment that some small news here and there would make the markets react very nervously and we may see a good amount of volatility happening. But otherwise I think the markets very broadly should show a good direction upwards,” he says.
He believes that a lot of panic preceded today’s trading especially over the last couple of days with the kind of movement that was seen in the stock market. “Perhaps a lot of things have been liquidated and perhaps we are on a much safer and stable wicket at the moment” he adds.
Rajen Shah of Angel Boking says that those with liquidity on hand and those who have missed out are doing some bottom fishing at lower levels and many of the players are also aggressively buying midcap mid and smallcap ideas.
“We has seen 1100 point kind of sharp fall on the market and those waiting on the sidelines with lot of cash on hand and those who have missed out the rally, which we saw from June onwards actually they have started buying at lower levels,” he says.
He believes that 2007 is going to be the year of mid and smallcap stocks. “There are quality midcaps, which have performed and delivered good numbers but have been laggards in the past six months. So 2007 is surely going to see lot of money getting into these kind of ideas and we could see significant re-rating of these ideas,” he points out.
He feels that if the levels continue to be a bit strong tomorrow there could be a consolidation around this level. “If the markets are more than 50 or 100 points tomorrow, I think then the markets are headed higher that’s what I would take it as,” he adds.
The markets have continued the rally for the second day running and it ended near the highest points of the day on the back of heavy buying seen in scrips across sectors. Indices got off to a firm start, and zoomed. They recovered half the losses they had made between Friday and Tuesday.
The banking stocks were back in style leading the uptrend followed by IT, capital goods and oil & gas. The markets have regained almost half of their losses that they made during the three-day downtrend. Midcaps and smallcaps also participated in the uptrend. The Sensex closed up 305.82 points or 2.32% at 13487.16, and the Nifty up 77.85 points or 2.07% at 3843.05.
Dilip Bhat, Prabhudas Lilladher says that the markets have reached such a stage where a lot of people are on the edge at the moment. The markets have been largely driven mainly by the liquidity surge.
“Markets are on such a cusp at the moment that some small news here and there would make the markets react very nervously and we may see a good amount of volatility happening. But otherwise I think the markets very broadly should show a good direction upwards,” he says.
He believes that a lot of panic preceded today’s trading especially over the last couple of days with the kind of movement that was seen in the stock market. “Perhaps a lot of things have been liquidated and perhaps we are on a much safer and stable wicket at the moment” he adds.
Rajen Shah of Angel Boking says that those with liquidity on hand and those who have missed out are doing some bottom fishing at lower levels and many of the players are also aggressively buying midcap mid and smallcap ideas.
“We has seen 1100 point kind of sharp fall on the market and those waiting on the sidelines with lot of cash on hand and those who have missed out the rally, which we saw from June onwards actually they have started buying at lower levels,” he says.
He believes that 2007 is going to be the year of mid and smallcap stocks. “There are quality midcaps, which have performed and delivered good numbers but have been laggards in the past six months. So 2007 is surely going to see lot of money getting into these kind of ideas and we could see significant re-rating of these ideas,” he points out.
He feels that if the levels continue to be a bit strong tomorrow there could be a consolidation around this level. “If the markets are more than 50 or 100 points tomorrow, I think then the markets are headed higher that’s what I would take it as,” he adds.