Weekly Market Quote - Sanjeev Zarbade, Vice President - PCG Research at Kotak Securities

"Markets have moved up strongly in October aided by positive global cues, bank recapitalization and liquidity support. Given the premium valuations, we expect the markets to consolidate these gains in November. Stocks that are reporting good earnings would continue to be lapped up by the investors. Global markets are seen closing this week on a positive note. The US markets rose on the back of improved corporate earnings and signs of economic recovery. The BSE-30 Index gained 2% to close at 32,182. SBI (+32%), ICICI Bank (+14%) and Bharti Airtel (+11%) were the top gainers on the BSE-30 Index while Kotak Mahindra Bank (-7%), Lupin (-5%) and HDFC Bank(-4%) were the top losers. Markets were enthused by the government's bank recapitalization plan announced earlier this week, which led to frenzied buying in PSU banks. FPIs bought USD 703 mn over the past five trading sessions while DIIs bought USD 259 mn worth of equities over the same period. The government also announced its massive plan of road building entailing investment of Rs 5 trn. This led to a significant move in construction stocks".

Source : Equity Bulls

Keywords