“Rallies can happen either because of strong fundamentals or strong liquidity supply. When Sensex was at 8,000-9,000 levels, it was driven up by the fundamentals,” said SMC Capitals equity head Jagannadham Thunuguntla. “These days it is being driven because of the liquidity. However, in such cases, a correction is imminent,” added Thunuguntla.

1. Sensex crosses 15,000-mark, first time since September (Roundup)
June 4th, 2009
Mumbai, June 4 (IANS) A key index of the Indian equities markets fought its way back into the green
Thursday to close above the 15,000-mark, first time since Sep 2, 2008.
It had ruled in the red for most of the day.
The 30-scrip sensitive index (Sensex) of the Bombay Stock Exchange (BSE), which opened at
14,755.08 points, ended at 15,008.68 points - 137.78 points or 0.93 percent above Thursday’s close.
The S&P CNX Nifty of the National Stock Exchange (NSE) aped the Sensex, ending trade at 4,572.65
points, reflecting a gain of 0.93 percent.
Broader market indices once again fared better, with the BSE midcap index gaining 2.26 percent and
the BSE smallcap index ending 2.2 percent up.
“Rallies can happen either because of strong fundamentals or strong liquidity supply. When Sensex
was at 8,000-9,000 levels, it was driven up by the fundamentals,” said SMC Capitals equity head
Jagannadham Thunuguntla.
“These days it is being driven because of the liquidity. However, in such cases, a correction is
imminent,” added Thunuguntla.
“About one in five stocks has rallied more than 50 percent during this rally. There will be a correction
soon.”
The Sensex touched an intra-day high of 15,026.03 points and a low of 14,599.43.
Of the 13 sectoral indices on the BSE, only that for metal stocks ended in the red, while realty, capital
goods and healthcare stocks found favour among investors.
There were six gainers on the Sensex, prominent among them being Ranbaxy, up 6.06 percent at
Rs.282.55; Sun Pharma, up 4.14 percent at Rs.1,306.65; Hindustan Unilever, up 3.73 percent at
Rs.248.65; and Reliance Infra, up 3.39 percent at Rs.1,273.45.

2. Losers included Sterlite, down 5.91 percent at Rs.661.30; Hindalco, down 3.54 percent at Rs.89.85;
Tata Steel, down 3.53 percent at Rs.470.70; and Wipro, down 1.26 percent at Rs.390.90.
The overall market breadth was positive, with 2,130 scrips advancing, 688 declining and 55 remaining
unchanged.
The NSE’s Volatility Index - a measure of the market’s expectation of volatility over the short term -
stood at 40.67 points Wednesday, higher than the 35-point mark that indicates risk.
In other Asian markets, a key index of Tokyo markets, the Nikkei, shut shop in the red slipping 72.71
points to end trade at 9,668.96 points.
The Hang Seng, the primary index of the Hong Kong Stock Exchange, also fell 73.7 points to
18,502.77 points.
European markets were in the green with the FTSE in Britain trading 2.12 points higher at 4,385.54
points, and its French peer CAC 40 ruling 21.56 points up at 3,331.21 points.