Positive news boosts markets

The markets opened weak as expected but then began to rally and closed very strong on the back of encouraging news flow from within the country The Sensex ended with net gains of 61264 points or 308 percent at 2052859 points The Nifty gained 18892 points or 320 percent to close at 609620 points The broader indices like the BSE100 BSE200 and BSE500 gained less at 302 percent 287 percent and 286 percent respectively The BSEMIDCAP gained 244 percent while the BSESMALLCAP gained 275 percent The top gainer amongst sectoral indices was BSEREALTY up 871 percent Other gainers included BSEIT up 614 percent and BSECAP GOODS up 583 percent There were just two losers in BSECON DUR down 062 percent and BSEMETAL down 013 percent u00a0Shutdown blues Even though there is a major crisis brewing in the US its markets have not fallen significantly PICAFP In individual stocks the biggest gainer was again Ranbaxy up 1074 percent Others included MCX up 1081 percent Tata Motors up 1012 percent and Tech Mahindra up 1076 percent The losers were led by Coal India down 884 percent Hindalco was down 310 percent The previous weekrsquos big gainer Just Dial after having a great run closed with losses of 1436 percent Boost The trade data was better with exports having grown and imports declining Imports declined on account of substantially lower imports of gold and crude oil While gold saw huge restrictions on import which have since been removed crude oil decline also indicates the decline in the economy The resultant CAD current account deficit was lower and markets welcomed it Friday saw Infosys declaring quarterly results which were largely on expected lines however the company raised the lower level of revenue guidance in dollar terms from 610 percent to 910 percent This saw the share price hit a 52 week high and close at R 3274 up 859 percent The strong share performance from Infosys helped the BSEIT and BSETECK record decent gains as well Rally FIIs were buyers of equity of R 3133 crore while domestic institutions were sellers of Rs 746 crore The Indian rupee strengthened to close at Rs 6107 a gain of 37 paisa or 06 percent The US government crisis continues and without a resolution the government will default on the October 17 The stalemate between the Democrats and Republicans needs to be resolved before the state defaults Surprisingly markets have taken this in their stride and the Dow rallied to close at 15237 points a gain of 165 points or 110 percent for the week This helped world markets to rally as well Cyclone Post market close on Friday the IIP numbers for August were declared but were disappointing at 06 percent against 27 percent in July Itrsquos quite likely that markets would react to these numbers adversely on Monday Indiarsquos worst cyclonic storm Phailin hit the coast of Orissa and a portion of Andhra Pradesh on Saturday night The storm had caused widespread damage which is yet to be assessed The advance information and preparedness has ensured that loss to human life has been minimized Outlook The week ahead has a trading holiday on Wednesday on account of Bakri Eid Reliance Industries TCS Bajaj Auto and HDFC are the key results which would be declared during the week Inflation numbers would also be declared on Monday and though the RBI review meet is a fortnight away these inflation numbers would have a bearing on interest rates The market in the week ahead would be newsdriven on account of inflation and corporate results Developments in the US would also affect our markets as they would have a bearing on world markets The key fact to note is that even though there is a major crisis brewing in the US their markets have not fallen significantly Itrsquos therefore quite likely that on resolution of the crisis there may not be much of an upside The old adage buy the rumour sell the fact should hold well here as well In an eventdriven week key levels for the Sensex are 20135 and 20750 while they are 5980 and 6175 for the Nifty The support for the Sensex is at 20411 points then at 20219 points then at 19921 points and finally at 19755 points It has resistance at 20607 points then at 20739 points then at 20795 points and finally at 20848 points The Nifty has support at 6059 points then at 5998 points then at 5912 points and finally at 5825 points It has resistance at 6120 points then at 6145 points then at 6231 points and finally at 6295 pointsu00a0 Arun Kejriwal is founder of the Mumbaibased advisory firm Kejriwal Research amp Investment Services Pvt Ltd Readers are invited to read more about these and other issues on his website httpak57inu00a0