Market ends high on Euro stimulus talk

Mumbai: Markets recorded fresh closing highs on Wednesday, with Sensex closed 117 points higher at 26,560 and Nifty gained 31 points to end at 7,936. Market turned bullish in expectation of further monetary stimulus in the Euro zone which raised the hopes of foreign investors who picked up blue chips like ICICI Bank etc.

The European Central Bank to hold policy review on September 4, expected to vote for more monetary easing as all the indicators are showing that fall of inflation in the euro zone.

Analysts say that India remains in bull run and inflows into markets will continue as huge money is waiting in the wings to be invested in the Indian markets.

With its foreign money inflow benefits the blue chips such as ICICI Bank gained 2.1 per cent and Tata Motors gained 1.8 per cent. Besides, the companies having considerable sales in Europe also expected to gain on the expectation of raising further ECB monetary stimulus measures.

Others gained include: ONGC 2.4 per cent, Dr Reddy's 1.2 per cent, BEML 5 per cent, Astra Micro Wave gained 8.1 per cent, while NTPC, M&M and HDFC Bank ended in red.

Scrip specific movement
Nifty closed with a gain of 31 point amid narrow and choppy movement. Further, Nifty has been closing in a tight range and a wide move can be expected. However, Nifty continued to close above 7900 mark and short term bullishness would be terminated only if it closes below 7850 and further strength would be reinforced only when it surpasses 7970. Nifty spot is expected to encounter resistance at 7975, 8010 and find support at 7895, 7860 for Thursday. Being last day of derivative closing, stock specific movement is most likely. The global cues and funds flow are expected to guide the market basing on the present market condition. It may be expected that the market may display volatile movement with scrip specific movement.-Dr B Amaranatha Sastry