The Sensex and Nifty market benchmarks reached a new high of 52,626.64 and 15,835.55 in morning trade on June 11 amid positive global cues. Synchronization with benchmarks, the BSE MIDCAP and ScatCap index, also touched the highest of all time 23,045,01 and 25,248.88.
The Indian market has been among the global top players this year. Sensex has surged 10 percent, while Nifty has recorded a 13 percent increase in the first six months of 2021.
The overall market capitalization of companies registered in BSE is now more than RS 231 Lakh Crore.
“The US 10-year yield fell to 1.44 percent and the dollar index drifted around 90, which showed that there were more feet for this bull market. The joy in a mid and small hat room is a concerned field but the market can react excessively prove that skeptics wrong in the short term, “said VK Vijayakumar, head of investment strategist, Geojit Financial Services.
In 2017 small indices rose around 60 percent. Buja has been removed in 2018 with great pain to migrants, he said. “Leading finance, it, pharmaceutical and metal shares are on a strong goal. Stay investing in these segments while exercising carefully when investing in a small hat,” Vijayakumar said.
Here are 5 key factors that seem to have led the market to the highest of all time:
- The Covid case shows a sustainable decline
India added less than 1 case of lakh for the fourth day in a row on June 11. Kasing rose 91,702, while active cases fell 46,281 and recovery rose by 1.34 lakh.
However, the death toll rose 3.403, with a mortality rate up to 1.24 percent. The level of participants remained below 5 percent at 4.49 percent against the previous day 4.69 percent. The recovery rate has also increased to 94.93 percent.
Counts of Covid India are at 2.93 crores, active cases of 11.21 lakh, recovery of 2.78 crores and deaths at 3.63 lakh.
Track update Live Coronavirus News here
2 Open Trading
Many states have begun to alleviate limits, improve market sentiment. As countries play sidewalks, the demand environment may be better, which can have a positive impact on the market, experts said.
Open a trading key will be different from 2021 compared to 2020, because of the locking part of this year, experts said. They expect sectors such as hospitality, travel, and entertainment to get the most benefits from hidden requests.
“In the previous unlock theme, the car was first done then consumer discretion, while BFSI was the last to be taken,” said Naveen Kulkarni, the investment axis said.
“This time it will be different because the pent-up request will vary across sectors. The wisdom of small tickets can do well but the main hidden request is on the way and hospitality,” he added.
3 retail investor booms
The Indian equity market witnessed the entry of strong retail investors. The country’s leading exchange, BSE, crossed the history of seven crore-registered users on June 7, 2021.
Some analysts see the relationship between a sharp surge in the number of retail and market investors at a high record.
“Increased entry of retail investors Post Covid-19 is one reason for the market rally,” said Deepak Jasani, Retail Research Head, HDFC Securities.
Jasani believes that the increase in retail participation will reduce dependence on institutional (local or foreign investors).
“This will help spread the culture of equity in this country faster. However, if there is a sharp selling, many retail investors can be trapped at a higher level and can stay away from the market for some time,” said Jasani.
4 anticipate faster economic growth
While many rating agencies have cut up estimates of India’s growth, there seems to be hope in the market that the country’s economy will register better economic growth than the estimates so Covid-19 is under full control and restrictions.
5 Picks Vaccination Pace
There is a broad consensus that vaccination is the only effective solution for pandemics. With vaccination exercises picking steps and government claims that it will have all the vaccinated populations at the end of the year, market participation predicts a strong bull market.
There are other reasons that have sustained market sentiment, such as guarantees from the central bank that a low-level regime will continue for a longer period and sufficient liquidity for financial markets will be ascertained.
In addition, stimulus talks have also emerged lately, fanning hopes that the government can announce steps to accelerate economic recovery.
However, there are risks too. The third wave of Covid-19 is still a possibility, while increasing inflation can damage the party. Economic indicators show signs of acute stress and the market shows sharp contrast with the reality of the country’s economy.
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