Sensex crosses 44 thousand for the first time, earn 71 thousand crores in a few minutes

Mumbai. After the big news about the Corona virus vaccine, the Indian stock market has reached an all-time high. The 30-share BSE major index Sensex has risen 350 points to cross 44 thousand. Sensex has crossed 44 thousand for the first time. At the same time, the NSE Nifty, the 50-share major index of the NSE, has jumped 100 points to reach the level of 12871. Experts say that in the first 5 minutes, investors have earned 71 thousand crores. In the days to come, the stock market will again show a new peak.

Why there was a strong boom in the stock marketModerna has said that her corona vaccine has been 94.5 percent successful. Earlier Pfizer also declared its vaccine to be 90 percent effective. Good news and relief package on the vaccine is showing enthusiasm in the markets. US markets continue to boom. India’s Biological E. has also started human trials. Meanwhile, Brent crude is also seeing a 3 percent jump. The condition of the boom in the US markets is that in yesterday’s trade, the Dow closed 471 points at 29950 levels. At the same time, Nasdaq was up 95 points and closed at 11924 ray level.

What should investors do now The leading brokerage firms have increased the Nifty target. Goldman Sachs and Nomura believe that the market will continue to boom, which may lead to new indices. Goldman Sachs believes that the Nifty 50 index can reach 14,100 levels with a gain of 11 per cent. Nomura has given this index a level of 13,640, which shows an increase of about 8 percent in it.

Goldman Sachs has also increased the rating of the Indian market. He said that equity investment in the country is increasing. The brokerage said, Sentiment has become positive due to the news of vaccine coming soon. This is increasing investment in equity. Hopefully, the stocks that are now lagging behind can pick up pace. This recovery is based on fundamental reasons. Goldman Sachs believes that real GDP growth could be 10 per cent in 2021 and 7.2 per cent in 2022. It is estimated that there will be a 9 percent reduction in GDP in 2020. The profits of companies are expected to decline by 11 percent this year, while in the years 2021 and 2022 it will increase by 27 percent.

Goldman Sachs believes that the cyclical sectors will perform better during the economic recovery. On the other hand, Nomura believes that the early launch of the vaccine is good news for the equity market. This has increased risk appetite, which has increased the flow of foreign investor.

The brokerage believes that Indian stocks can benefit from the relaxation in monetary policy of central banks. Nomura said, along with the improvement in general valuation, the cost of capital has also come down, due to which the hopes of growth are getting better.

Nomura has hoped for the good performance of ICICI Bank, Axis Bank, State Bank of India, Max Financial. It has named HCL Technologies, Mahindra & Mahindra and Sun Pharma as its first choice.

Strong boom in Asian markets- Today, Asian markets are also seeing a boom. Japan’s benchmark index Nikkei continues to boom. At the same time, the Strait Times of Singapore is looking up by 0.80 percent. Hong Kong’s major benchmark index, Hangsang, also looks strongly at the 26,434 level.

Increased expectation about Indian economy- This has been estimated in a report by Oxford Economics, a global forecasting company. The report said that inflation in the fourth quarter of the current financial year will be more than six per cent on average and the central bank will keep the policy rates unchanged in the December monetary policy review.

“Inflation based on consumer price index has reached a high level before Kovid-19 in October. Prices have increased in other categories except fuel. Inflation will be at its maximum in the fourth quarter and in 2021 we will need to be more cautious on this.

In October, retail inflation rose to a six-and-a-half year high of 7.61 percent as prices of eggs and vegetables rose. This is more than the satisfactory level of the Reserve Bank. Retail inflation stood at 7.27 percent in September 2020.

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