Is the Sensex exhibiting “irrational exuberance”? Market guys believe otherwise. The business boardrooms’ true trust in the Indian tale, along with the government’s efforts to accelerate economic growth, is driving the indexes. On Tuesday, the Sensex crossed 75,000 for the first time, reaching a high of 75,124 before settling at 74,684 by the conclusion of trade. The collective market capitalization of the BS listed businesses exceeded Rs. 400 lakh crores. The rise extended beyond Group A shares to include mid-caps and small-caps. On Wednesday, the Sensex added 354 points to its previous day’s gains.
Market analysts expect strong Q4 results for 2023-24 to propel the Sensex to new heights, with some predicting it would surpass 80,000 points by the end of the year. In just four months, the index rose from 70,000 to 75,000 points.
The surge has shifted away from relying on foreign capital to maintain a bullish sentiment. Domestic mutual funds are now supporting the market. The increase in demat account openings indicates that medium and lower income households are investing their money in the market. While foreign institutional investors continue to participate in Indian markets, domestic savers appear to be outperforming them. Banks and financial intermediaries are opening record numbers of demat accounts, indicating that market culture is reaching hitherto underserved people in cities, towns, and villages.
The indexes’ steady increase may be attributed to sound market sense. The latest third-quarter growth rate in the previous fiscal year of 8.4% was quite encouraging. The forecasted annual growth rate was 7.6%. The current year’s projected rise of 7% is positive for the bulls.
Markets anticipate strong corporate earnings for the quarter ending March 31. The US Fed is expected to drop bank rates across the Western bloc as consumer inflation in the US decreases further. At the most recent Monetary Policy Committee meeting, the RBI held off on reducing lending rates until food inflation eased further. Markets are optimistic about policy consistency and Modi-3.0’s expected comeback.
All of these elements contribute to a positive outlook. Elon Musk, CEO of Tesla, is scheduled to meet with Prime Minister Modi later this month to discuss establishing an electric vehicle plant. This news has sparked interest among stock market investors.
ABHISHEK VERMA
Author: This news is edited by: Abhishek Verma, (Editor, CANON TIMES)
Authentic news.
