Indian shares have jumped quite significantly today. If this trend remains then soon we will see Indian share index to record high. I know that many people are excited now but I cannot feel so happy. In fact, sudden increase in Indian share market may not be a good sign after all. I have not forgotten what happened earlier this year in May. In May, shares rose to record level and then fell down. Many Indians lost their money that time. Hopefully, this time it will be different.
Reuters reported:
“Indian shares rose for a fourth straight session on Friday to near record highs, posting their highest close in almost five months on strong economic growth data and sustained buying in blue-chips and in steel producers.
India's economy, the fourth-largest in Asia, grew at an annual rate of 8.9 percent in the April-June quarter, boosted by manufacturing and services output, data showed on Friday.
The gains on the benchmark BSE index were led by top tobacco maker ITC Ltd., which rose 1.9 percent to 187.65 rupees. Reliance Communications Ltd. gained 2 percent to 346.75 rupees.
"The market was in a holiday mood due to the long weekend but the GDP numbers changed the game," said an institutional dealer.
"This proves that we are on the right track and may cross new highs in near future.”
I also hope that this increase continue for sometime. However, if the market falls downs again like May then many investors will lose their money. It seems that this time the shares rose for two reasons:
1. For the positive news on GDP growth (8.9% in April-June Quarter).
2. According to NDTV, “selective buying in blue-chip technology and metal companies ahead of the quarterly earnings season that kicks off next month.”
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For the positive news on GDP growth (8.9% in April-June Quarter).
Posted by: http://www.buraqsys.com/ | October 6, 2006 12:10 PM | Permalink to Comment