Indian equity benchmarks surged to fresh record highs on Friday with the S&P BSE Sensex index crossing the 60,000-mark for the first time ever. Gains across most sectors led by banking and IT shares pushed the market higher. The 30-scrip index completed a 10,000-point journey to the 60,000-mark within months, having hit the 50,000 level intraday trade for the first time in January 2021.
Here's what experts said on Sensex's latest milestone:
Sandeep Bhardwaj, CEO- Retail, IIFL Securities:
"Expectations of solid economic recovery and sustained growth in the next couple of years is keeping the bulls enthused. Also from a global funds perspective, India remains an attractive destination, especially in the China Plus One scenario. Retail investors must have a diversified portfolio at this stage to face any kind of volatility."
Dhiraj Relli, MD and CEO, HDFC Securities:
"The time taken for the last 10,000 points was much less (246 days; the previous 10,000 points took 609 days). Also, the time taken for the Sensex to gain the last 5,000 points was just 42 days (the previous 5,000 points took 204 days). This shows the impact of the return of FPIs and local investors continuing to invest despite headwinds that cropped up time and again."
"The absence of a 10 percent correction in the indices over the last 18 months shows the maturity of local investors but also throws up the possibility of that happening over the next few weeks/months.”
Motilal Oswal, MD and CEO, Motilal Oswal Financial Services:
“The rally in the domestic market is driven by positive global cues, strong inflows by FIIs/DIIs, good corporate earnings, falling Covid-19 cases, upbeat corporate commentaries and a low cost of capital. Amid the buoyant sentiment and increased activity, valuations have reached elevated levels and demand consistent delivery on earnings expectations."
"Given rich valuations, one cannot ignore intermittent volatility. However, we expect the positive momentum to continue on the back of improving economic activity and a recovery in corporate earnings.”
Rahul Sharma, Co-Founder, Equity99:
"Realty and IT shares are leading the rally today. As the market is making new highs every day and has reached new highs in a short duration, we advise investors to ride the rally but at the same time keep strict stop losses to their positions considering dicey global clues driven by the likely Evergrande crisis."
"Technically, the 17,800 level will act as support for Nifty. If the index crosses that level, we might see 17,750 as the next support. On the upside, 17,950-18,000 levels will act as crucial resistance... For Bank Nifty, support is seen at 37,500-37,250 levels and resistance at 38,300 and 38,500.
Santosh Meena, Head of Research, Swastika Investmart:
"We are in a classic bull market, like the 2003-2007 phase, which is likely to continue for the next 2-3 years. However, I will put the word of caution after a parabolic move in the last few days because short-term correction can't be ruled out in the coming days."
"We are in a strong uptrend and outperforming global markets while some mean reversion can be seen in the coming days where rising crude oil prices and a surge in US bond yields could cause near-term volatility."
"Since the overall view is bullish and Sensex can march towards the 1,00,000 mark in this bull run, investors are advised to remain invested where any 10-20 percent correction will be a great buying opportunity. SIP is the best way to ride the current bull run."
Rahul Sharma, Director, Head-Technical and Derivative Research, JM Financial Services:
"Nifty is expected to reach 50 percent of its Fibonacci extension (18,111) of the second leg of the rally which began from April 2021. Market internals, breadth and thrust have been robust but some profit booking is expected around the 18,100 mark."
"'Buy the dip' is the mantra for fresh entry as supports is expected at 17,650 and 17,300. Bank Nifty can post another breakout above 38,100 for a possible target of 40,000 in the October series. We remain positive on telecom, auto and private banks."
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities:
"It’s a big achievement for India. Especially when uncertainties are mounting in the world markets, such performance is remarkable. To date, it is backed by DIIs buying in equities but now fresh interest from FIIs is pushing the market upward. In the coming month, news flow on corporate earnings would also help the market rally further."
"Even at 60,000, our advice for investors is to buy select stocks (strong companies in terms of managing and growing companies) with a medium- to long-term view. Most of the time in the market it is proved that the level of the index is just a number and the actual market index is very different. However, buying is advisable in tranches/parts. Do not lock your entire funds at current levels."
Amar Ambani, Senior President and Head of Institutional Equities, YES Securities:
"The Sensex has hit 60,000 much ahead of our target date of December 2021. We continue to remain positive on the long-term outlook of Indian equities. Corporate balance sheets have been significantly strengthened with record equity raise in last two years. On the revenue front, the listed universe is on firm ground."
"We expect the government to continue spending on infrastructure and fasttrack the reform agenda as we have seen with lowered corporate tax rates, PLI schemes, RBI support, strategic divestments and so on. With accommodative financial conditions worldwide, we see the mega rally in risk assets continuing."
Anand James, Chief Market Strategist at Geojit Financial Services:
"Sensex mounted the 60,000 mark as risk appetite improved after fears surrounding the Evergrande debt crisis eased. BSE found almost 60 percent of its stocks advancing in the first hour."
"But we remain watchful of the market weighing in rate hike prospects as US Treasury yields have begun to firm up following the Fed's taper signals."
Ashish Biswas, Head of Technical Research, CapitalVia Global Research:
"The market has crossed the $3 trillion valuation mark. The BSE benchmark took just 245 days to scale the journey from 50,000 to 60,000, less than half the time it took to scale the previous 10,000 points."
"IT companies like Mindtree and Tata Elxsi have gained a lot. Bajaj Finance, Bajaj Finserv and Info edge are also among the major gainers during the bull run. The sectors that has shown major gains are IT, metal and pharma."
Mohit Nigam, Head-PMS, Hem Securities:
"In intraday trade, the Sensex crossed the psychological 60,000 mark. Most global markets had shed gains last week amid concerns about potential risk spillover from Evergrande’s debt crunch and the outcome of the Fed meeting. However, investors once again increased their risky bets following some comfort on both these fronts. The Chinese developer's statement that it had struck a deal on one imminent debt repayment comforted investors. The markets were also relieved by the Federal Reserve's tone indicating that it had kept the option of extending the stimulus."
"Reduction in Covid cases and the strong vaccination numbers along with improvement in economic activity and the optimism around the capex cycle revival also boosted sentiments. However,the massive rally in Sensex from the March lows of last year -- without any significant correction in between -- has made some analysts cautious."
Palak Kothari, Research Associate, Choice Broking:
"On a weekly chart, the Sensex index has been trading with a higher high and higher bottom formation, and has been trading above all the moving averages. Momentum indicator Stochastic is also trading with a positive crossover which further adds to its strength. The Index has been rallied straight after giving a breakout of 53,000 and the bulls are looking active... Every decline should be treated as a buying opportunity."
"Immediate resistance comes in at 61,500, followed by 63,000, and support at 57,800."
Sameet Chavan, Chief Analyst-Technical and Derivatives, Angel One:
"Global markets have seen a relief rally after some bumpy rides recently and this has brought back optimism in our market as well. Our market had a remarkable comeback in last three sessions after the Nifty50 index tested the key support zone of 17,350-17,250."
"We have clearly outperformed global peers as they just managed to give some relief but our market has given a V-shaped recovery to clock fresh highs. This recovery beyond 17,600 has certainly surprised us but eventually the market is superior."
"Ideally, after the market surpassed the previous highs, our cautious stance should have been negated, but there are few timewise projections as well as negative divergence in the RSI smoothened oscillator, clearly holding us back. Hence we would keep reassessing the situation closely for the next couple of days. As far as levels are concerned, every 100-point psychological level from here would be seen as immediate resistances, that is 17,900 and 18,000. On the flipside, 17,700-17,650 levels are seen as key supports."
Nish Bhatt, Founder and CEO, Millwood Kane International:
"The Indian equity market is on a roll. The key thing is the swiftness of the rally. The time taken for Sensex to move from 55,000 to 60,000 is only 29 trading sessions. That was a rally of nearly nine percent in less than two months. The rally highlights investors' confidence in the underlining strength of the Indian market. India has been one of the best return-yielding markets among the emerging market spectrum."
(Edited by : Sandeep Singh)
First Published: IST