Stock Market: Recovering from the decline, the BSE Sensex has surged 19,540.01 points or 66.30 percent in the current financial year so far.
Vaccine discovery boosts market
The stock market has given good returns to investors despite various hurdles in the current financial year. Even after the COVID-19 Crisis and its impact on the economy, the BSE Sensex rose by over 66 per cent. Market experts termed the year 2020-21 as a volatile year. . This situation was seen not only in the Indian market but also in the stock markets around the world. The BSE Sensex, based on 30 stocks recovering from the fall, has soared by 19,540.01 points, or 66.30 per cent so far in the current financial year.
Given the ups and downs in the current financial year, this boom in the market is quite important. The BSE Sensex had touched a low of 27,500.79 on April 3 last year. But later it gained momentum and it reached an all-time record level of 52,516.76 on February 16, 2021.
Vaccine discovery boosts market
VK Vijay Kumar, chief investment strategist, Geojit Financial Services, said the stock market gained momentum with the slowdown restrictions and the economy getting back on track. A confidence that aroused by the discovery of vaccines increased the market further. Globally, the stock markets rose strongly in November. Foreign Portfolio Investors (FPIs) invested continuously in emerging markets.
Sensex crosses 52 thousand
There have been many such occasions in the current financial year when the Sensex reached a record level. This financial year will end on 31 March. There are two business days left in it.
The main index closed above the 50,000 mark on February 3 for the first time. The market gained momentum mainly due to the excitement over the provisions of the budget. It closed above the 51,000 mark on February 8. The Sensex closed above the 52,000 mark on February 15 for the first time.
According to Vijay Kumar, the Union Budget for 2021-22 was quite significant. Market reforms were boosted by major reforms such as privatization.
Government and RBI took big steps
Religare Broking Ltd. K Vice President (Research) Ajit Mishra said that the thing that got the market confidence, was the reopening of the economy, which enabled companies to start functioning. This gave investors a confidence that the market will remain revived
He said, again, both the government and the RBI took steps to bring the economy and macro-economic elements back on track. Apart from this, the market was also strengthened with the introduction of favorable global market and vaccination campaign.
Investors are irked by rising cases of COVID-19
However, the recent rising cases of COVID-19 have again adversely affected the perception of investors. Vijaykumar said, now the major concern is again in India in COVID cases, while in some parts of Europe, the third speed is up.
However, it is not expected to have that much effect. The reason for this is the rapid vaccination campaign. Again there is no possibility of complete ‘lockdown’, only restrictions can be imposed at a limited level.
There will be a boom in the market even further
Regarding the time ahead, he said that the market is expected to remain bullish as the US Federal Reserve is committed to keeping interest rates close to zero by 2023.
According to Mishra, the perception has already been affected for the market. However, we do not see a panic situation in the market. Because investors are aware that the government’s emphasis is now on bringing the economy back on track. In the coming time, the vaccination campaign will speed up, this will also reduce the pressure.
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