"It is a momentous day for India's capital markets
as the Sensex
touched 50,000 on January 21. The gain of the last 5,000 points has come in just 32 trading sessions. Expectations of a turnaround in the economy post-Covid vaccinations and continued FPI inflows have led to this kind of gains for Indian markets
in a globally low-interest scenario," says Deepak Jasani, head of retail research at HDFC Securities.
During the 74 sessions, the market capitalisation of the listed firms on BSE soared by Rs 38.55 trillion to Rs 199 trillion.
Meanwhile, four Sensex
stocks offered returns of over 50 per cent between October 8 and January 20, with public sector lender State Bank of India (SBI) leading the charge with 57.98 per cent rise. It was closely followed by Larsen & Toubro (L&T) that added 56.86 per cent. Today, SBI
was marginally down while L&T gained half-a-per cent.
One of the best Sensex performers of all time Reliance Industries
was the worst performer during this period and shed over 8 per cent. However, from its 52-week low of Rs 868 scaled in March last year, the stock has soared 137 per cent.
Going ahead, all eyes would be on the Budget and global cues for further direction of the index. Some analysts are, however, concerned about the valuations and believe they look stretched at this juncture. "As the sensex crosses the 50k, the valuations do look stretched. The valuations are a function of earnings and earnings not coming through remains the key risk at the current juncture," said Joseph Thomas, Head Of Research at Emkay Wealth Management. CLICK HERE TO READ ABOUT INVESTMENT STRATEGY FROM HEREON!
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