The uptrend in the stock market seems unbridled. However, today was a day full of volatility in the market. Sensex crossed 62,000 for the first time in intraday. At the same time, Nifty also touched the level of 18600 but during the end of the trading day, profit-booking dominated the market and finally the Sensex-Nifty closed in the red mark. At the end of trading, the Sensex closed at 61,716.05, down 49.54 points, or 0.08 per cent. On the other hand, Nifty closed at 18,418.75, down 58.30 points or 0.32 percent.
Except today, there is a bullish atmosphere in the overall market. The decline in the cases of COVID and the good results of the companies is fueling the market rally. In the last 8 sessions, the market had seen a rise of about 5 percent. Despite the rise in crude oil prices, almost all sectors have seen a rise. However, market experts say that due to rising oil prices, inflationary pressure may increase. It is worth noting that auto and consumer durables are taking part in this market boom. At the same time, due to the improvement in credit growth, the sentiment of banks has also shown an improvement.
VK Vijay Kumar of Geojit Financial Says that the weakness of the global market is not showing any effect on the Indian markets and the Indian markets are putting the high on the high. However, he also said that the valuations of some segments have reached very dangerous levels. He further said in a conversation with Moneycontrol that it has become very difficult to justify the current price earning ratio above 100.
Stocks that are hitherto very expensive will be hit the most if there is a reversal under any circumstances. He further said in this conversation that fundamentally strong stocks like big banking stocks are not looking overvalued right now. At this time in the market, it is important to give due importance to valuation and quality. Significantly, in today’s trading, the Sensex was seen crossing the 62,000 level in the intraday. Let us also inform that the BSE Sensex touched the level of 52,000 on 15 February 2021. It has taken 8 months for the Sensex to cover the distance of these 10000 points from 52,000 to 62,000. The Sensex has gained 19 per cent during this period. However, during this period the performance of the BSE 500 index has been better than the Sensex and has shown a rise of 26 per cent. In this eight-month journey of the Sensex, there have been 53 stocks that have proved to be multi-bagger. And there has been an increase of 100 to 400 percent in them.
Talking about the top 5 of these too, the names of JSE Energy (417%), Gujarat Fluorochemicals (273%), Happiest Minds Technologies (251%), IRCTC (243%) and Adani Total Gas (238%) are included.
During this time, the stock of IRCTC has been in the headlines due to the opening of the economy and the decline in the case of COVID. It has crossed the market cap of one lakh crore rupees. However, before the fall, it also touched the level of Rs 6,000 in intraday today.
Mohit Nigam of Hem Securities Says that rising crude oil prices remain a challenge for the market at this time. This can give a blow to the industrial growth of India. He further said that this week the results season will be on its peak and around 200 companies will present their second quarter results. The process of vaccination is going on very well in the whole country. According to the government announcement, this week 100 crore people across the country will get the vaccine. This is a good sign for the market.
Facebook us for social media updates (https://www.facebook.com/moneycontrolhindi/) and Twitter (.) to follow.
.