ZyFin Advisors' chief executive Devendra Nevgi told IANS that with all the triggers on which the market can react being positive, the earnings need to catch up for the markets to remain on the high growth trajectory.
"There are healthy global cues like reduction in crude prices, Japanese central bank's decision to print in more money and the pick-up in global sentiments," Nevgi said.
International and domestic markets remained in the positive in the last one week mainly due to steps taken by central banks around the world. Foreign investors went on a buying spree by stocking-up shares worth $718.51 million.
For the week ended Nov 7, the FPIs massively bought stocks worth Rs.4,411.93 crore or $718.51 million, according to data with the National Securities Depository Limited (NSDL).
"Equity valuations will remain at elevated levels because of the strong flows from both FIIs and domestic investors. The superior returns generated by equities over other asset class will also lead to higher flows in equities in future," Iyer said.
For the week ended Nov 7, the FPIs had massively bought stocks worth Rs.1,046.42 crore or $170.46 million.
The foreign institutional investors (FIIs) along with sub-accounts and qualified foreign investors have been clubbed together by market regulator Securities and Exchange Board of India (SEBI)to create a new investor category called FPIs.
The major Sensex gainers on Friday were: DrReddy, up 4.51 percent at Rs.3,400; Sun Pharma, up 2.53 percent at Rs.891.65; Axis Bank, up 2.44 percent at Rs.468.85, Hindustan Unilever, up 1.84 percent at Rs.759.25 and ONGC, up 1.44 percent at Rs.409.25.
Major Sensex losers were BHEL, down 3.21 percent at Rs.249.10, Gail, down 2.46 percent at Rs.485, Sesa Sterlite, down 2.09 percent at Rs.246.15, Hero MotoCorp, down 1.99 percent at Rs.2,898.50 and HDFC Bank, down 1.51 percent at Rs.899.
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