Monthly Market: Champagne finish: Sensex touches 18-month high

Sharekhan's monthly newsletter Visit us at www.sharekhan.com January 04, 2010  Market Commentary  Champagne finish: Sensex touches 18-month high  Market touches new highs on strong global cues and buying in IT and CD stocks Brushing aside worries like run-away inflation that could see the Reserve bank of India hike key policy rates, and following the footprint of global markets, the market back home continued to surge in December. Swinging 953 points, displaying volatility, the Sensex touched its 18-month high of 17531 on the last trading day of the month. Closing at 17465, the Sensex finished 539 points higher over its November closing. Nifty also touched 5200 level for the first time in 18 months before closing at 5201, 168 points higher than its last month closing. Fast moving consumer goods (FMCG) and banking scrips were out of favour with the BSE FMCG and BSE Bankex down by 2.80% and 0.11% respectively. Information Technology (IT) and consumer durables drew interest with the BSE IT and the BSE CD gaining 9.02% and 8.48% respectively. The remaining indices closed 1.83% to 8.26% higher. January 2010 is likely to see the Sensex surge higher on optimistic economic outlook and healthier Q3 corporate earnings. The month could also see higher volumes due to extended working hours. To know more about our products and services, click here. ?This document has been prepared by Sharekhan Ltd. This Document is subject to changes without prior notice and is intended only for the person or entity to which it is addressed to and may contain confidential and/or privileged material and is not for any type of circulation. Any review, retransmission, or any other use is prohibited. Kindly note that this document does not constitute an offer or solicitation for the purchase or sale of any financial instrument or as an official confirmation of any transaction. Though disseminated to all the customers simultaneously, not all customers may receive this report at the same time. SHAREKHAN will not treat recipients as customers by virtue of their receiving this report. The information contained herein is from publicly available data or other sources believed to be reliable. While we would endeavour to update the information herein on reasonable basis, SHAREKHAN, its subsidiaries and associated companies, their directors and employees (?SHAREKHAN and affiliates?) are under no obligation to update or keep the information current. Also, there may be regulatory, compliance, or other reasons that may prevent SHAREKHAN and affiliates from doing so. We do not represent that information contained herein is accurate or complete and it should not be relied upon as such. This document is prepared for assistance only and is not intended to be and must not alone betaken as the basis for an investment decision. The user assumes the entire risk of any use made of this information. Each recipient of this document should make such investigations as it deems necessary to arrive at an independent evaluation of an investment in the securities of companies referred to in this document (including the merits and risks involved), and should consult its own advisors to determine the merits and risks of such an investment. The investment discussed or views expressed may not be suitable for all investors. We do not undertake to advise you as to any change of our views. Affiliates of Sharekhan may have issued other reports that are inconsistent with and reach different conclusion from the information presented in this report.  This report is not directed or intended for distribution to, or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction, where such distribution, publication, availability or use would be contrary to law, regulation or which would subject SHAREKHAN and affiliates to any registration or licensing requirement within such jurisdiction. The securities described herein may or may not be eligible for sale in all jurisdictions or to certain category of investors. Persons in whose possession this document may come are required to inform themselves of and to observe such restriction. SHAREKHAN & affiliates may have used the information set forth herein before publication and may have positions in, may from time to time purchase or sell or may be materially interested in any of the securities mentioned or related securities. SHAREKHAN may from time to time solicit from, or perform investment banking, or other services for, any company mentioned herein. Without limiting any of the foregoing, in no event shall SHAREKHAN, any of its affiliates or any third party involved in, or related to, computing or compiling the information have any liability for any damages of any kind. Any comments or statements made herein are those of the analyst and do not necessarily reflect those of SHAREKHAN.? To unsubscribe write to myaccount@sharekhan.com

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