Mumbai, Aug. 4: Powered by a strong performance from the tech-pack, the BSE Sensex touched a 30 month high of 18,217 points on Wednesday. Stocks of IT majors Infosys, Wipro and TCS were up sharply during the day’s trade, a day after Cognizant declared much better than expected financial results. Analysts feel that the ongoing rally in the markets is because of the large amounts of money that foreign investors have brought into India over the past several months.
“Fundamentally, we are fairly valued but fund flows quite strong,” says Mr. Jigar Lodaya of Sharekhan. “Index from here on should be range bound but should take some baby steps up,” he adds.
“We expect the liquidity driven rally to continue,” says Mr. Ajay Parmar of Emkay. The direction of the market shouldn’t change till the inflows from FIIs change, he adds. going ahead, he says that auto, phamaceutical and engineering sectors look good.