Ahmedabad (Gujarat): The stock market is booming, with fresh players continuing to take in new ones due to continued inflows of foreign funds. As a result, the Sensex jumped to a level of 60,000 on the last day of the week with all-around buying, and the NIFTY was trading very close to 18,000, to close at lifetime highs on Friday. The BSE Sensex has jumped above 60,000 from a benchmark index of 50,000 in January this year, making it the highest ever jump of 10,000 points in just 8 months.
Sensex's Historic Trip
The index had hit the 1,000-mark on July 25, 1990, touched the 10,000-mark for the first time on February 6, 2006, the 20,000-mark on October 29, 2007, the 30,000-mark on March 4, 2015, the 40,000-mark on May 23, 2019, the 50,000-mark on January 21, 2021, and finally touched the 60,000-mark on September 24, 2021. It took thirty-one years for the Sensex to reach the 60K mark.
Sensex surges 163.11 points
The BSE Sensex opened at 60,158.76 on Friday morning against the previous close of 59,885.36, which shows a rise of 163.11 (0.27 per cent).
NIFTY rose 30.25
The NSE Nifty opened at 17,897.45 on Friday morning against the previous close of 17,822.95, which unilaterally increased to 17,947.65 Lifetime High and from there fell to 17,819.40 and closed at 17,853.20 at the end of the trading session. Which shows a rise of 30.25 (0.17 per cent).
Top five CEOs to invest in India
Prime Minister Narendra Modi, who is on a visit to the US, met the top five CEOs on Thursday and invited them to invest in India and discussed the country's open market so that the CEO of the top five US companies has expressed interest in investing in India. The news had a positive effect on stock market sentiment. That's why the bullish players fired new ones.
One crore new investors joined, 2 crore Demat accounts opened
India has now overtaken France to become the sixth-largest stock market in the world. The Mumbai Stock Exchange has attracted over 1 crore investors in the last three months alone. Credibility has increased in the Indian stock market, and new investors are still joining. Investment in mutual funds and the stock market is on the rise. New IPOs are coming up in the primary market, with investors getting the best returns. Therefore, new Demat accounts are also being opened. In the last 10 months, a total of 2 crore new Demat accounts have been opened in the country.
Significant increase in market capitalisation
The market cap was over Rs6 lakh crore in 2001-02, rising to Rs68,39,083 crore in 2010-11. And now it has risen further to Rs2,61,73,374 crore. Thus the wealth of investors has steadily increased.
FII (Foreign Institutional Investors) net buyer
As of September, foreign funds have made a total new investment of Rs6,695 crore as of September 23, 2021. In August, FII made a new purchase of Rs4,640 crore. Thus FII has been a net buyer, due to which the stock market sentiment has been bullish.
DII (Domestic Institutional Investors) also net buyer
Speaking of local financial institutions or DIIs, the purchase of local financial institutions and mutual funds has also continued. As of September 23, 2021, DII has made a net investment of Rs1,546 crore. It had invested Rs6,894 crore in August and Rs18,393 crore in July.
No worries about liquidity in the market: Wealthstreet
Ajay Saraogi, a co-founder of Wealthstreet, told ETV Bharat that "the boom in the Indian market is intact. The bulls' grip on the market was strengthened again in the last two sessions after a negative opening earlier in the week. Technically 18,000 and then 18,500 targets are being seen. The market boom is led by NBFC, IT and Reliance Industries. While the metals are showing underperformance. The realty sector has seen a big rally in two sessions. The Indian stock market is still attractive for investment in the long run. Public sector enterprises appear to be outperforming in the market. They have also provided significant support to the Nifty.
"In my view at every decline, one should continue to buy into PSU shares. They may show outperformance compared to the broad market until the month of March 2022. The IT sector is booming and there is room for further improvement in select counters. The pharma sector seems to be on the sidelines. However, the undercurrent is stronger and therefore should be more than accumulation. The rally in the markets following the statement by the US Fed on tapping indicates that the market is not worried about liquidity. The Indian market is also getting strong support from domestic liquidity. Despite the market being at its peak, there is no panic anywhere."
17,400 strong support in Sensex: Treadbulls
Asif Hirani, Director, Treadbulls Securities, told ETV Bharat that "the Nifty has maintained its target of 18,000 following a smart move during the week. Which is the upper end of the Rising Channel pattern on a weekly basis. The growing proximity between the upper and the current level narrows the opportunity for reward-to-risk on the new long. The market is seeing support rising to 17,400. Thus one should buy closer to this level waiting for the market to decline and should have a stop loss of 17,270."
Also read: Sensex zooms over 350 pts to hit 60K for first time; Nifty crosses 17,900
