New Delhi: Indian stock markets jumped high in the morning trade on Monday with BSE Sensex quoting above 15,352 (a gain of 196.30 points) and the Nifty at 4,477 points. All the major stocks were trading in the green.
While brokers are still skeptical that it may to be too early to rely on the jumping indexes, analysts say that the rally may go on, now that the US markets have also come out from the red.
“Technically the market has formed a base and we may see some more upside in the days to come,” Technical analyst, Prakash Gaba was quoted by moneycontrol.com.
The US markets have recuperated ever since Fed Chairman Ben Bernanke dropped hints that he would "act as needed" to ensure financial market stability.
Mr Bernanke's assurances were interpreted as a signal that the Fed would cut interest rates later this month.
But when it comes to Indian investors, they are still wary whether to expect markets to go higher or be prepared for a fall.
“I don’t know about the near-term but I don’t think the worst is over. If you read the reports and you speak to analysts in the US who track the mortgage markets and the sub prime markets, where much of this has actually originated. Someone in New York about two weeks ago told me that the reported losses at least at that point of time was about USD 3 billion from the sub prime loan segment,” Jyotivardhan Jaipuria of DSP Merrill Lynch told CNBC TV 18
On the Bombay Stock Exchange, the major gainers in the opening trade were Sterlite Industries, SAIL, Tata Steel, HDFC Bank, ICICI bank, Infosys, RIL and Maruti.
Those lagging behind were ONGC and BPCL that opened in red.
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