Sensex crosses 60,000 for the first time as dream run continues on D-Street
- In Reports
- 05:01 PM, Sep 24, 2021
- Myind Staff
Indian equity markets have been on a dream run this year and there are no signs of the momentum fading as benchmark indices hit fresh record highs on Friday. For the first time, the S&P BSE Sensex crossed 60,000 as investors remain optimistic about the future of the domestic stock markets.
The Sensex index traded at 60,294.53, up more than 400 points at 9:23 am. Meanwhile, the NSE Nifty 50 index hit an all-time high of 17,924.05 at Friday's opening. In just eight months, Sensex crossed 60,000 for the first time after crossing 50,000 in January. On a year-to-date (YTD) basis, the BSE Sensex has rallied 25.10 percent.
On 5 February, when the Union Budget stimulated a rally, it hit a historic high of 51,000, breaking the previous high of 50,000 touched earlier this year. The benchmark index continued its upward trend on 15 February, achieving 52,000 points.
As of 4 August 2021, it passed 54,000. The next crucial levels of 55,000, 56,000, and 57,000 were reached respectively on 13 August, 18 August, and 31 August.
Experts had predicted that this would be a far better outcome than it actually was. Likewise, Nifty has posted steady gains during the period.
The last 1,000 points needed to climb to 60,000 were added in six trading sessions. As of yesterday's close, the Sensex was up 958 points, closing at 59,885 points - up 59,957 points from its intraday high of 59,957.
The increase in banking, metal, and IT stocks is one of the major factors behind this year's stellar stock market performance.
Although other segments have performed well this year, the banking sector has provided a significant boost to the market. This was followed by an aggressive rally in metal stocks. Market turbulence has hardly dampened share prices even on days when investments in IT have been strong.
There may be a correction in the works, analysts warned.
The previous bull markets in India - 1991-1992, 1994, 1998-2000, 2003-2007 - all experienced large corrections of 5-10%. However, this has not been the case. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, predicts that this will change very soon and that the market will correct, perhaps soon. “The amateurish money of retail investors is now dominating the smart money of institutional investors”, Vijaykumar said.
Image source: India Today
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