Mumbai: a strong bull rally that has begun at the end of March 2020, when the fear of global investors about the pandemic is at its peak, has taken the Indian market hat and above $ 3.5 trillion now – more than double than around $ 1.3 trillion.
Some factors have contributed to the rally to break this record in the global market, including in India.
This includes the number of infusion of unprecedented funds by almost all central banks to support their respective economies, record low interest rates in most large markets, and encouragement of investors to channel their savings in the absence of a lack of opportunities for spending during the moon pandemic.
On Monday, Sensex ended 167 points higher at 58,297 – the third consecutive session of the record closed with intra-day height at 58,516.
At NSE, Nifty also followed a similar record track and closed on the new alltime peak of 17,378 points, up 54 points that day.
Official data shows that so far in 2021, both Sensex and Nifty have strengthened to become a fresh life of fresh life around 40 times.
However, Indian benchmarks still miss their US counterparts.
For example, the appropriate number for the S & P500 index is 54 times.
Last month, the rally received another boost after the US Fed’s head said that it was impossible to raise interest rates in a hurry.
As a result, Sensex added almost 5,000 points, or 9.4%, making India the best performance stock market in the world.
In the country, the largest booster on the wealth of investors during the current rally since March 2020, which is measured by the capitalization of the BSE market, comes from the dependency industry who see its market value jumped by $ 210 billion to $ 210 billion.
Other significant wealth creators are TCS, up $ 110 billion to $ 191 billion, and infosts – up $ 70 billion to $ 110 billion now, official data shows.
According to a report by the Motilal Oswal Financial Services (MOFSL), the newest supical market is led by the shipping of strong income, benign liquidity and floating sentiments.
“Delivery of good income (during the first quarter of fiscal 2022) has encouraged hope for solid FY22 with 30% + projects nifty revenue growth, behind a strong 15% income growth in FY21,” noted.
In addition to strong corporate revenues, a stable currency that has shown a trend of appreciation in the past two weeks also attracted foreign funds to the Indian market with net purchases for 2021 on more than RS 55,000 Crore, data from CDSL shows.
In the future, management comments throughout the board suggested improving the demand environment after June 2021, causing boundary easing, lower active Covid cases, and pickup in vaccination, reports by MOFSL noted.