Just before the opening bell rings for the for the first trading session of the week, there is a sense of high degree of optimism in the Indian stock market. After posting gains in all the five trading sessions of last week, which was the first trading week of the year 2013, there is also a sense of cautiousness in the market as well. In fact the market has ended in positive zone in all the trading sessions of this year.
Positive global cues, strong inflow of foreign funds in Indian equity market, optimism around quarter three corporate earnings announcement that will start coming from this week and several other positive domestic market related news is all set to take the market to new high. However, whether the market will be able to sustain at such high level is something to watch for, as many analysts have already sent words of caution as they felt that the Indian market is in over bought situation.
Overseas investors have pumped in a hefty sum of Rs 4,520 crore in the first week of the New Year according to data released by Sebi. Analysts feel that foreign investors have stepped up their buying activities after the US Senate passed a 'fiscal cliff bill' that delays the automatic spending cuts by two months and raises taxes on individuals earning more than USD 400,000 a year and households making more than USD 450,000.
In 2012, FIIs had made a net investment of Rs 1.28 lakh crore (USD 24.4 billion) in Indian equities. This was the second best year for the country's stock market after a record inflows of Rs 1.33 lakh crore (USD 29 billion) in 2010.
Globally, the Dow Jones finished the week at a five-year high and most European indices closed their best in over three years. Even the Japanese index closed at a 22-month high. Asian shares have started the day’s trading on a mixed note. While Nikkei and Taiwan is trading lower, KOSPI, Jakarta and Shanghai is trading in the green zone. Indian share market will start the day in positive territory but there may not be much upward movement. This is probably not the right time to take long position.
Positive global cues, strong inflow of foreign funds in Indian equity market, optimism around quarter three corporate earnings announcement that will start coming from this week and several other positive domestic market related news is all set to take the market to new high. However, whether the market will be able to sustain at such high level is something to watch for, as many analysts have already sent words of caution as they felt that the Indian market is in over bought situation.
Overseas investors have pumped in a hefty sum of Rs 4,520 crore in the first week of the New Year according to data released by Sebi. Analysts feel that foreign investors have stepped up their buying activities after the US Senate passed a 'fiscal cliff bill' that delays the automatic spending cuts by two months and raises taxes on individuals earning more than USD 400,000 a year and households making more than USD 450,000.
In 2012, FIIs had made a net investment of Rs 1.28 lakh crore (USD 24.4 billion) in Indian equities. This was the second best year for the country's stock market after a record inflows of Rs 1.33 lakh crore (USD 29 billion) in 2010.
Globally, the Dow Jones finished the week at a five-year high and most European indices closed their best in over three years. Even the Japanese index closed at a 22-month high. Asian shares have started the day’s trading on a mixed note. While Nikkei and Taiwan is trading lower, KOSPI, Jakarta and Shanghai is trading in the green zone. Indian share market will start the day in positive territory but there may not be much upward movement. This is probably not the right time to take long position.
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