Nifty, Sensex Scale new 52 week Highs

On the back of positive Global cues and reduced fears over the effects of Drought, Indian Market continued its 6 month rally to scale new 52 week highs in the bourses.

The broader Indices have clocked in more than 100% gains since the Bottom made in early March 2009, Mid caps have joined the party and are surging to new highs. The mood in the markets is positive with expectations of markets to reach 5000 levels in coming sessions.

However RBI has raised concerns over inflation , according to RBI governor Inflation is becoming a concern sooner than expected. Food inflation is becoming a serious worry with the country facing a drought situation. Nomura Securities expects Inflation to hit 6.5% by march 2010.

Finance Minister Pranab Mukerji on his return from the G20 Meeting in London has said Indian growth is likely to decelerate on the back of continued fall in exports.