The benchmark index has gained nearly 9 per cent since its December 20 low till date. Nifty Fifty once again seems to be approaching 18,000. For the first time since November 2021, the BSE Sensex was seen moving above the psychological level of 60,000. The market has shown a sharp recovery after the recent fall. The market has been seeing an uptrend for four consecutive days. Investors have made strong gains in the last 12 trading sessions. Initially, this rally was sector specific but later it appeared to be taking a wider base. With the threat of a major lockdown receding, almost every sector seems to be participating in this rally.
There has been an increase of Rs 20 lakh crore in the earnings of investors in the last 12 trading sessions. Between December 20 and January 5, the market cap of BSE has increased from Rs 252.57 lakh crore to Rs 272.4 lakh crore.
Strengthening of credit growth of banks in the third quarter, expectation of good results from companies, rally in global markets and once again buying by FIIs have been some of the sectors which have given a boost to the market sentiment.
Ajit Mishra of Religare Broking The Indian market seems to be fueling the global boom amid mixed cues from domestic factors. Apart from this, the third quarter results are going to start coming soon. The market seems likely to remain firm in the results. Along with big banking stocks, buying in many index heavy weights has been seen returning. Its effect is being seen on the market.
More than 100 shares of Nifty-500 gave double digit returns in the latest rally, Nifty 50 improved 7% from lower levels
After touching a record high on October 19, the market had become very volatile and got stuck in a bearish phase. The market mood had worsened due to expensive valuations, dangers associated with new variants of Corona and signs of tightening in US monetary policy. And it had broken more than 11 per cent from its record high.
Since now the market is once again seeing a broad based rally. Small-medium stocks are also a big contributor to the latest rally. In the last 12 days, the Nifty Mid Cap 100 Index has run up 7 percent and the Small Cap Index 8 percent.
Yesha Shah of Samco Securities It says that the fundamental strength in the Indian economy remains intact. It is expected that the growth seen in the performance of companies in the year 2021 will continue in the year 2022. Although its speed may be a little slow. He further said that India Inc’s overall performance is expected to remain strong in the December quarter due to the country’s economic recovery and pick-up in demand. However, some sectors may see pressure on profit margins. The reason for this pressure will be inflation, problems related to the supply of parts.
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