Share Market Every day moving forward in India, sentiments are rising on Dalal Street and keeping all those positive aspects in mind, the market is breaking records, reporting all time highs and giving maximum returns to investors. It took just 8 months for the equity market in India to cross the 60,000 mark. 30-share BSE Sensex It was trading at around 50,000 in January this year and within 8 months, the benchmark indices hit an all-time high of 60,000.
“Sensex at 60000 level! Market is performing well due to heavy liquidity in last few quarters, upward earnings cycle, economic revival due to fading Covid-19 impact. However, market participants are facing rising inflation and liquidity from the system. The rising inflation risk and therefore the withdrawal of ultra-easy monetary policy by global central banks (primarily the Federal Reserve) could lead to a sharp rise in bond yields allowing riskier assets to correct faster So one can invest with a watchful eye on the move in yields across the globe, which could result in a sharp drop of 10-15 per cent from the current levels,” said Piyush Garg, CIO – ICICI Securities Ltd.
This is happening at a time when the COVID-19 infection curve has almost flattened, vaccinations are on the rise, the economy is getting back to normal, economic fundamentals are improving – these factors combined to propel the market. are. According to many analysts and keen market watchers, this phase of a sustained bull run is similar to the 2003-2007 phase, where the bulls lasted for about 2-3 years. So a sustained bull run for the next 2-3 years is something that cannot be denied.
“The BSE Sensex conquering the peak of 60,000 is an important day for all the market participants. The journey since its launch in January 1986 has been spectacular. The level reflects a strong underlying economy, which is reflected in the recently reported strong tax collections by the government. With vaccination also setting new records, we are in clear skies and many more peaks to be conquered in the months to come. The only hurdle ahead appears to be a potential tapering announcement by the US Fed. US 10-year bonds have started raising their heads, and this needs to be monitored. For India, however, we are in the most exciting times ever,” said Vijay Singhania, President, TradeSmart.
The markets are so excited that the benchmark index has risen over 25 per cent this year. With improved economic infrastructure, a drop in COVID-19 cases and record vaccinations, bottlenecks in the supply chain are being removed. According to epidemiologists, we cannot lower our defenses, but India is entering the pandemic phase, so going forward, industrial activity will pick up and the market will continue to grow and grow.
The Sensex climbed 10,000 points in a few days. Now, with the better economic conditions, and economic fundamentals as well as the continued rally in the markets, even the 1,000,00 mark does not seem invincible.
Highlighting the ideal investment strategy for investors, Sandeep Bhardwaj, CEO, Retail, IIFL Securities said, “Expectations of solid economic recovery and sustained growth in the next few years are making the bulls excited. From a global fund perspective also, India remains an attractive destination, especially in the China+1 scenario. Having said that retail investors should have a diversified portfolio at this stage to counter any volatility.”
“Sensex hits 60k mark as risk appetite improves after fears around Evergrande debt crisis eased. The BSE saw a rise of nearly 60 per cent in the first hour. But we keep an eye on the markets weighing the prospects of a rate hike as US Treasury yields strengthen following the Fed’s taper signal,” said Anand James, chief market strategist at Geojit Financial Services.
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