Saturday, May 23, 2009

India's sensex up 14%: highest in 17 years

The BSE Sensex climbed for third week, after ruling party won general election. Sensex soared 14 percent, which is the best weekly record since March 1992.

At the start of the week, when the market was suddenly climbed more than 17 percent, few experts believe that the market is overbought, but the scenario was different. The BSE index has gone up for eleven weeks in a row, and has climbed 73 percent from the low market of 2009 March.

India's second- largest bank, ICICI Bank Ltd and India's biggest producer, Tata Steel Ltd, gone high more than 20 percent. Mitsubishi Corp. Japanese trading house, climbed 3.7 percent. The MSCI Asia Pacific Index jumped to 99.35 (2.1 percent up). Asian markets have brought in order 41 percent since it dropped very low in March.

"Markets are euphoric,” said Rahul Chadha, the Hong Kong- based head of Indian equities at Mirae Asset Global Investment, with $46 billion in global equities."

"Valuations have become high, but people are buying because they may be left out otherwise," D.D. Sharma, vice president at Anand Rathi Securities, said.

It's a freedom for Asian shares after a drop on Wall Street on fears the US, could lose AAA rating. European shares are up now after more than 2 percent fall in last session.

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