On Tuesday, the Sensex touched a new high of 11,017.25 during intra-day trades, before some amount of basket selling, especially in the Nifty stocks, pulled it down to close at 10,905.20, a loss of 35.91 points. On a day when most Asian markets also ended lower, the broader S&P CNX Nifty of the National Stock Exchange (NSE) too ended the day at 3,262.30, marginally down by 3.35 points.
Experts are of the view that the 11,000-mark was just waiting to be breached and investors should now get ready for more volatile times.
Hemang Raja, MD & CEO, IL&FS Investsmart Ltd, said, The markets will now be quite volatile. On one hand, prices are fairly valued and on the other hand, flow of funds is not stopping. And it is not all about FIIs, as MFs are also mobilising huge amount of money. As a result, there are always buyers present in the market at the current levels.
When the indices touched record levels, the turnover also witnessed an increase. The cash turnover on BSE and NSE was pegged at Rs 4,909.57 crore and Rs 9,197.66 crore, respectively. FIIs, who have pumped in over $3 billion in CY06, were net buyers in the cash market on Monday at Rs 148.20 crore ($33.40 million).