It’s unprecedented: Experts

Mumbai: In a first, BSE Sensex has crossed 80,000 mark on Wednesday. It was a historic milestone which has happened within a month of the sharp fall that the market had witnessed on June 4 when the results of the recently concluded General Elections were announced.

Talking to Bizz Buzz, Arun Kejriwal, Founder at Kejriwal Research & Investment Services, says: “The low on that day (June 4) on BSE Sensex was marginally above 70,000 and on Wednesday, it touched a historic 80,000 mark, a gain of 10,000 points or around 14 per cent.” This is unprecedented and shows the confidence the market has in the present government, he said. Shrikant Chouhan, Head (Equity research), Kotak Securities on Sensex crossing 80,000 mark says, “Sensex crossing the 80,000 mark is a big achievement for the Indian stock market. 16 years ago it was at 8,800 on the day when Lehman, the leading bank in the US markets, crashed. Nine times returns in 16 years.”

However, four years ago during the time of Covid, it was at 26,000 level, which seems unrealistic, but it is true. It gives confidence that equity markets did perform well in the long run, we need patience and confidence, while investing and even after it. Based on the current domestic macros, our advice is to continue investing systematically in equities with a long term perspective, he said.

“Sensex milestones are a journey and not a destination. Do remember that this journey is both forward as well as backward. Nasdaq went so backwards that it took 17 years to come back to the previous peak,” says Nilesh Shah, MD, Kotak Mahindra AMC.

Invest in the market as per your risk appetite, have long term horizon, significantly moderate your return expectations and follow the dharma of asset allocation, he added.

The next major event in markets will be within 2-3 weeks when the Union Budget will be presented on the floor of Parliament. Continuity of policies and agenda of the previous term is expected this time around as well. One expects higher outlay for infra, creation of long-term infrastructure assets growth across critical sectors.