At 862 points, the NSE Midcap index was close to its 2-year high of 884.15 in July last year. Compared to a mere 0.43 per cent returns of Nifty since March 31, 2003, the NSE Midcap index, which represents second-line stocks with about 68 per cent of the total market capitalisation on NSE, has surged by 29 per cent during the less than 2-month period.
According to Indiabulls equity analyst Dinesh Chandel, Foreign institutional investors have been actively buying into the equity markets over the past one month.
Defying all apprehensions, the banking stocks continued their dream run on the bourses on Monday with eight of them hitting their all-time highs. These included Punjab National Bank (Rs 178.9), Union Bank of India (Rs 34.8), Oriental Bank of Commerce (Rs 146), J & K Bank (Rs 212.5), Vijaya Bank (Rs 21.3), South India Bank (Rs 56.35), State Bank of Travancore (Rs 603.85) and State Bank of Mysore (Rs 612.5).
No Repo Rate Cut Now: Jalan
New Delhi: RBI governor Bimal Jalan said on Monday there was no proposal to cut the repo rate as of now and added the banks bias towards soft rates would continue. He said the appreciation of the rupee against the dollar was absolutely normal. He said the recent fall in inflation was a favourable development and expected inflation to ease further from the second quarter.
Refinery stocks have also flared up during the period, thanks to the appreciating rupee which is expected to cut their import bill and boost bottomlines. ONGC surged to an all-time high of Rs 469.4 on Monday before closing at 457.2, a gain of 1.75 per cent over its previous days close. Indian Oil was another gainer surging 5.89 per cent during the day to close at Rs 329.9 on Monday.
RIL, HLL Push Sensex Up 47 Pts
Mumbai: Led by Reliance Industries and HLL, frontline old-economy stocks on Monday pushed the Sensex to a seven- week high. It gained 46.86 points to close at 3,096.70 points.
Ucal Fuel Systems (Rs 244), Kalyani Brakes (Rs 285), Rane Brake Linings (Rs 169.9) and Rane Engine (151.35) were among those which touched their all-time highs on Monday.
The day also witnessed heightened activity in consumer durables stocks. Value buying in these stocks saw the BSE CD index surge 4.24 per cent during the day. Major gainers included Titan Industries, Bluestar, BPL Ltd, Timex Watches, Videocon Appliances, Matsushita TV and Samtel Color. These stocks gained up to 13 per cent during the day.
However, Mr Dinesh Chandel had a word of caution, The mid-cap stocks are high-risk, high-return business. While there is certainly a story in these stocks due to low valuations and higher dividends which they have been able to declare, retail investors need to be cautious, he says.