Sensex May Cross Historic High Of 34,000 Points Next Week

Business

oi-Sunil Fernandes

By Sunil Fernandes

Published: Saturday, December 23, 2017, 7:36 [IST]

Markets this week, once again hit a new historic high, despite the fact that the Gujarat results may not have been as per expectations. However, once again liquidity is coming to the fore, which is propelling the markets higher.

This week apart from the Gujarat elections, the other major event was the 2G verdict, where all the accused were acquitted. Stocks where select executives were made accused rallied, after the Court said that there was no 2G scam.

For example, DB Realty and Unitech saw their shares rally following the 2G verdict. Shares in DB was locked at the upper end of the circuit filter for two days in a row. The ADAG group stocks also rallied, especially where some of its executives were made accused. RCOM and Reliance Capital saw hectic buying support and activity.

During the course of the week, IT stocks also saw good buying support with TCS surging after a record deal. This also had a rub off impact in Infosys, which also gained momentum.

During the week shares of Eclerx Services too rallied after the company approved a buyback of shares at Rs 2,000.

Meanwhile, bitcoins also were in action tumbling almost 13 per cent in a single day.

The markets next week may continue to move higher, as fresh liquidity into mutual funds continue to pump the markets higher. However, the markets have gone up too much and profit booking at higher levels would be advisable.

Indian markets would remain closed on December 25 on account of Christmas.

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