Business Desk, ETV Bharat: Stock market indices scaled record highs for the second consecutive day with Sensex breaching 43,000-mark for the first time and Nifty gaining over 170 points to close at its all-time high of 12,631 points.
Added to the victory of Joe Biden in the US presidential elections last week, Pfizer’s announcing positive results of Covid-19 trail vaccine and the unexpected BJP’s winning spree in Bihar pushed the equity benchmarks to further highs.
As the demand is picking up in major economies of the world, including India and China, stock market analysts believe that the current rally would continue for some time.
“Generally, market hate uncertainty. A solution to covid is in sight and smooth election result in the US made the market happy,” said Devang Mehta, Head, Equity Advisory, Centrum Wealth Management.
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Devang, who closely tracks fundamentals of the economy and corporates, had also said change in the local sentiment in terms of economic recovery happening sooner or later, good corporate earnings and enough liquidity in the market would further fuel the rally.
Responding to ETV Bharat’s query on the way ahead for retail investors, Devang has advised them to depend more on fundamentals rather than getting into the trade just for the sake of quick money.
It may be recalled more than 24 lakh demat accounts were opened during April-June 2020 period.
“One has to do his homework and buy equities in tranches. Buy the best of the best fundamentally sound corporate governance companies,” said Devang.
“Investments are done for a longer period. Don’t expect miracles in the next 5-6 months. Invest for the next 3-5 years. And, if you have bought good businesses, you will get good returns,” he added.
