15 May, 2021

Charge Of The Bull Brigade

Easing tensions in Kargil, strong basics, a reviving economy and FIIs let loose the bottled up genie

Charge Of The Bull Brigade

If ever there was any doubt about India winning the Kargil impasse, the stockmarkets decimated it last week. Five years and a minor border war later, the Bombay Stock Exchange (bse) surpassed the bull run unleashed by Harshad Mehta in the early '90s. On September 12, '94, the bse Sensitive Index (Sensex) had climbed to 4643.31. Last week, on July 14, the Sensex finally crossed that altitude to close at 4710.25, the new peak in its 125-year history. Says K.R. Bharat, managing director, Credit Suisse First Boston (India): 'We're in the middle of a bull run and though a correction is due (that is, the Sensex may fall a bit before rising again), the undercurrent remains extremely strong. Crucial macro-economic factors show clear signs of recovery and there's liquidity in the system. The Sensex is set to cross 5000.'

True to his word, on Thursday, July 15, it pierced the 4800 mark to the day's high of 4810.33, but closed lower at 4679.92 after punters decided to sell and book some profits. Says broker Ramesh Damani: 'It (the previous high) was...

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