Business & Investment

Sense: The stock market may witness the recording of profits after a peak of 50,000.All eyes on the budget

New Delhi: India’s stock market, which added new wings to the cap by expanding 50,000 mounts for the first time, could anticipate profits, but for now, the next coalition budget that will impact future travel Is attracting attention. According to analysts, of the good stock index. Investors witnessed a variety of sentiments in 2020, from huge losses to record profits. The market showed a volatile trend last year, with benchmarks plummeting on March 24 to a year-long low of 25,638.9, but soaring to a record. Highs in the second half of the year.

The benchmark reached 50,000 marks on January 21st and continues to be a record run. During Thursday’s trading, the BSE index of 30 shares jumped to a record high of 50,184.01.

“We expect the market to enter the integration phase later this year and return to an uptrend again after 2010,” said Rusmic Oza, head of basic research at Kotaku Securities.

The overall market plan changed in just 10 months from a massive loss to a record peak. This happened when the world was facing a health crisis.

Market analysts said the sharp recovery of the market after the March crash was the injection of abundant liquidity into the global financial system by the world’s major central banks, the participation of unprecedented individual investors, and the last few months. We believe it is due to a number of factors, including expecting success. vaccine.

Driven by improved investor sentiment, the market capitalization of BSE-listed companies has also set a new record, currently over 194 rupees. The market capitalization of BSE-listed companies exceeded the groundbreaking Rs 100 on November 28, 2014.

In 2020, investors became rich at Rs 32.49, supported by the massive returns of the roller coaster stock market in the year of the coronavirus pandemic.

From March 23, 2020, when the Benchmark Index recorded the worst one-day crash in history, to the present, investor wealth has risen by a whopping Rs 92,48,551.09.

30 shares of BSE throughout 2020 Sensex I made 7 profits every month and lost 5 of them.

The country’s first stock index, the Sensex, was launched in 1986. On July 25, 1990, we closed over 1,000 marks. At another milestone, the benchmark ended on February 7, 2006, above the 10,000 mark.

“The Indian market has shown strong momentum over the past few months in hopes of a faster economic recovery after the pandemic blockade, as well as positive global clues, a sustained FII influx, and a strong outbreak. Corporate profits kept sentiment high. The next budget topic was also added. Market strength. Budgets could potentially lay the foundation for long-term economic growth paths. ..

“Overall, the market is rising against the backdrop of sound corporate profits, strong liquidity, positive developments in the vaccine sector, widespread economic recovery and low interest rates,” said Hemanjani, head equity strategist at Motiral Oswar. I expect it to continue. ” Financial services said.

Jani also said that the unleashed economy since June 2020 has significantly restored various macro and micro data points, and the stock market has once again surpassed record highs.

“The three major factors driving the market are wise economic recovery, FPI flow and earnings adjustments,” Oza said.

Apart from FII investment, the rally was also led by direct investment by domestic investors. Jani added that the plunge in the Indian market in March opened up opportunities for stock selection and clearly changed the way individual investors participate in the stock market.

“The speed at which central banks around the world inject liquidity was the number one reason for the stock market to recover,” said S Langanasan, head of research at LKP Securities.

VK Vijayakumar, chief investment strategist at Geojit Financial Services, said the market could become very volatile in response to events and news in the future.

Budgets can have a significant impact on the market, depending on whether they are positive or negative from a market perspective. If the budget is growth-oriented, reformist and investor-friendly, the market will react positively.

Other factors that could affect the market were third-quarter corporate performance and FPI flow trends, he said.

March 2020 turned out to be horrifying for the domestic stock market, and benchmark Sensex scored 8,828.8 points (23%) during the month as concerns about the economic impact of the coronavirus pandemic shook investor sentiment. It plummeted sharply.

However, India’s stock index has returned to victory towards the second half of 2020.

From the bottom of the panic seen in March, Oza said the Indian market, along with other global markets, began to recover after April and gained momentum after June as the Indian economy gradually opened.

“The rally gained momentum after the results of the first quarter of 2009 exceeded expectations and gained momentum since the results of the second quarter of 2009. From June to August, the FPI flow surged and the rally Accelerated. Near the end of the calendar year, India began witnessing a consistent fall. In the case of Covid-19, where other developed markets began to witness a second wave, this favored the Indian market. It worked. ”

According to Ajit Mishra, Vice President of Research at Religare Brokering, the market has the potential to make some profits in the future and will be healthy given the recent backlash. In addition, he added that the current earnings season and the next union budget will lay the groundwork for the next direction.

Sense: The stock market may witness the recording of profits after a peak of 50,000.All eyes on the budget Sense: The stock market may witness the recording of profits after a peak of 50,000.All eyes on the budget

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