Liquidity flow drives Indian markets further up

Liquidity flow continues into the Indian markets driving them ahead. The party continued in Indian markets even though the trading was shortened this week due to Muharram on Thursday. BSE Sensex closed up by 66.15 points at 10110.97 helped by Ranbaxy Laboratories, Hindustan Lever, L&T and Hero Honda. BSE Sensex hit an intraday high of 10122.25 and low of 10057.07.

Ranbaxy Laboratories closed up by 6.5% at Rs.432.75. Ranbaxy has been in the news for the past few days, for a change this time with good news flow. Ranbaxy has been announcing new tie-ups and in the news for an acquisition in the Europe.

Few Banking stocks were in limelight during this week on increasing the interest rates. Canara Bank rallied in the bourses on hopes of restarting Ratnagiri Gas and Power Ltd (formerly Dabhol Power Corporation).

Sensex closed higher with gains from Hindustan Lever (Rs.208.05, up by 5.61%), L&T (Rs.2313.45, up by 4.92%), Hero Honda Motors (Rs.923.4, up by 4.32%), Satyam Computers (Rs.756.7, up by 3.35%).

ITC Ltd closed higher by 2.81% at Rs.163, Grasim Industries Ltd closed higher by 2.16% at Rs.1572.

Reliance Energy, Cipla, HDFC, Tata Power, Dr Reddys Laboratories closed higher by more than 1%. Out of 30 stocks in Sensex, 20 advanced higher, 9 closed lower and 1 remained unchanged.

NSE S&P CNX NIFTY closed at 3027.55, up by 18.6 points. Ranbaxy Laboratories (Rs.433.05, up by 6.57%), Zee Tele (Rs.162.7, up by 5.68%), Hindustan Lever (Rs.208.05, up by 5.5%), L&T (Rs.2311.85, up by 4.88%), Hero Honda (Rs.922.7, up by 4.25%), VSNL (Rs.383.15, up by 4.24%) helped NIFTY to close higher.

Satyam Computers closed higher at Rs.757.3, up by 3.46%. ITC, MTNL, Glaxo, Grasim and M&M closed higher by more than 2%. SAIL, Reliance Energy, Cipla, Tata Power, HDFC, BPCL, IPCL, Tata Chemicals, Dr Reddys Laboratories, Punjab National Bank closed higher by more than 1%

Other notable gainers in the markets were, Williamson Magor & Co Ltd (up by 20%), Winsome Yarns Ltd (up by 20%), Prakash Industries Ltd (up by 20%), Jai Balaji Sponge Limtied (up by 20%), Shri Ramrupai Balaji Steels Limited (up by 20%), Titan India Ltd (up by 11.17%), Canara Bank (up by 9.71%), Aventis (up by 7.33%), Syndicate Bank (up by 5.67%), Andhra Bank (up by 3.46%), Bank of India (up by 4.86%), Dishman Pharma (up by 10.08%).

The liquidity flow is not expected to dry as mutual funds have garnered around Rs.8000 crores from the recent schemes. A part of that money is driving the markets now. Markets are expected to go up further due to the continuous liquidity flow.

Source : Equity Bulls

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