China’s rate cut lets lose bulls in Indian markets
Chinese central bank slashed the key lending rates
By : DC Correspondent
Update: 2014-11-25 02:22 GMT
MUMBAI: The equity markets rose to a record high on Monday tracking gains in overseas equities after the Chinese central bank surprised global market participants by slashing the key lending rates to boost its domestic economic growth. The talks of further stimulus measures by the European Central Bank (ECB) also helped the global equities to sustain their winning momentum.
Mirroring the broader trend in global equities, the Sensex rose to an all time high of 28,541.96 in the intra day trade before closing the day at 28,499.54, gaining 164.91 points or 0.58 per cent. The Nifty climbed 52.80 points or 0.62 per cent to end the day at 8,530.15.
“The scenario has completely changed. More stimulus measures from China and Europe means that there would be ample amount of liquidity that would flow into emerging market asset classes,” said Uday Kumar Dubey, vice president, institutional equities at R.K.Global.
With the Nifty breaching the 8,500 level mark, Mr Dubey said there was lots of short covering in the derivatives segment. “Nifty is clearly racing towards the 9,000 level mark and another 200 point rally in Nifty can’t be ruled out in the near term. The winter session of Parliament is expected to take the markets to new highs as lot of important bills are expected to be taken up during the current session,” he added.
According to the provisional data released, FPI purchased shares worth Rs 407.42 crores. Alex Mathew, head of research at Geojit BNP Paribas Financial Services however believe that the markets are in an overbought zone and could see high profit booking going ahead.