NIFTY closes above 4000 for the first time
NIFTY has closed at 4001 today, its first close above 4000 ever. The global markets gave mixed to negative cues today morning and NIFTY opened firm in the morning above 4000. It reached 4010 and then it was range bound between 3995 and 4010 and closed at 4001.
4000 is a crucial psychological level which has been achieved after the deep correction in May 2006. Recently the markets have been very bullish and huge funds have been pumped in by FIIs and domestic funds. After the deep correction in May 2006, NIFTY has travelled straight to 4000 levels without any significant dip. Investor confidence is very high and a close above 4000 level is a reassurance of strong fundamentals of Indian corporates and strong Macro economic factors.
Some experts believe that this is perhaps the last leg of bull run and markets might take a U turn from these levels. Almost all the sectors have participated in this bull run. However, Realty, Construction, Media, Banking, capital goods and Engineering stocks remained in the limelight. Some bluechip stocks like ICICI Bank, Zee Telefilms, Maruti, Bharti, Reliance Communications, etc. outperformed the markets whereas some sectors like sugar, tea and consumer goods under performed during this bull run. It seems that the markets have sufficient liquidity and much of the bull run is still left. Retail investors and HNIs have started investing recently and they have not made much money in the bull run. FDI is being allowed in more and more sectors, more foreign money is waiting to be invested in India. Much is happening in Construction and realty space, with new SEZ policies announced by the Government, infrastructure and construction companies are bound to benefit.
On the macro level it seems that the India story has a long way to go, but there might be some profit booking on higher levels or there might be some international triggers which may cause markets to back track.