Markets flip-flop, IT, FMCG surge
Wednesday, 10 November 2010
MUMBAI, Nov 9 (Business Standard): Markets have been volatile for most part of the day as State Bank of India continued to put downward pressure and frontline stocks like HDFC Bank, Infosys and Hindustan Unilever helped Sensex recover in the last leg of trade.
The Sensex opened in the green at 20,851 and touched an high of 20,984, up 132 points, but profit booking financials dragged the index to the day's low of 20,763, down 89 points. The benchmark has surged 76 points to 20,932 and the Nifty has risen 23 points to 6297.
Analysts say that the current rally has not lost steam and there is further upside left."Historically, the markets have peaked out at around 26x to 28x forward P/E (Price to Earnings) ratio.
Currently, the Sensex is trading at 21x forward earnings. Hence, we have not run ahead of valuations," TS Harihar, Senior VP, ICICI Securities said.
On the global front, the Asian markets have closed on a mixed note. The key indices Hang Seng ended down 1 per cent at 24,710 while the Nikkei shut shop at 9,694, losing 0.3 per cent.
However, Jakarta Composite gained 0.7 per cent to close at 3,726 while Taiwan Weighted and Seoul Composite ended flat.
The Sensex opened in the green at 20,851 and touched an high of 20,984, up 132 points, but profit booking financials dragged the index to the day's low of 20,763, down 89 points. The benchmark has surged 76 points to 20,932 and the Nifty has risen 23 points to 6297.
Analysts say that the current rally has not lost steam and there is further upside left."Historically, the markets have peaked out at around 26x to 28x forward P/E (Price to Earnings) ratio.
Currently, the Sensex is trading at 21x forward earnings. Hence, we have not run ahead of valuations," TS Harihar, Senior VP, ICICI Securities said.
On the global front, the Asian markets have closed on a mixed note. The key indices Hang Seng ended down 1 per cent at 24,710 while the Nikkei shut shop at 9,694, losing 0.3 per cent.
However, Jakarta Composite gained 0.7 per cent to close at 3,726 while Taiwan Weighted and Seoul Composite ended flat.