Good fundamentals, corporate results drive the rally

Mumbai, March 21 | Updated: Mar 22 2006, 06:45am hrs
The good economic fundamentals, constant FII inflows and better corporate results were the main common drivers for the Sensex journey from 8,000 to 11,000 points.

The 30-stock benchmark index crossed 11,000 points on tuesday in the intra-day trades to touch the high at 11,017 points.

The Sensex touched 8,000 points on September 8, 2005 and 9,000 points on November 28, 2005. It has touched 10,000 points on February 6 and 11,000 points today.

Niscahl Maheswari, senior vice president, Edelweiss said, "Good fundamentals, strong economy and FII flow helped the market to rally. The high crude oil prices were not transferred to the consumers which has restrained the inflationary pressures".

Both Union government and Reserve Bank of India (RBI) have projected 8% growth in the begging of the financial year for 2005-06. This has strengthened the investors sentiments towards market.

In fact, the economic survey released before the general budget has confirmed the GDP at 8.1% as against 7.5% in the previous year. The agriculture too grew at 2.3% as against 0.7% in the previous year.

The crude oil prices in the global market touched $ 67 per barrel in the last mid-year. However, the government has not transferred the price hike to the consumers.