The 30- share benchmark index, Sensex is hovering around the level of 19, 500 points, while the 50-share Nifty lies at the level of 5, 936. The bullish sentiment in the market is said to be the result of the government's FDI victory in both houses of the parliament.
THE MARKET is riding high on the hopes that the government will continue with many other long awaited reforms like pension, banking and insurance once the FDI hurdle gets the green signal.
Market expert Arvind Pruthi while speaking on the current rally in the market expressed strong possibilities of consolidation taking place in the equity market in coming times. “Markets could consolidate for sometime. We have seen a very sharp rally. In the coming days what we can see is the consolidation in the market in a very narrow range. I don't see markets going down below 17, 500 points in the near future. I see that market could consolidate in the range of 17,500-19,500," Prurthi hoped.
Pruthi added that the rally in the market is only due to change in the sentiments due to government's victory in the Lok Sabha on FDI issue. He said that on ground level nothing has changed.
“The one reason behind the rally in the market since couple of last days is abundant liquidity. The second thing is the only change in the perception because the markets are driven by sentiments nothing beyond that.
"Post this FDI victory of the government that sentiments have changed. This is the only thing which is driving markets up. As far as fundamentals are concerned nothing really has changed,” Pruthi said.