A remarkable recovery from March lows
Sustained bull-run is backed by swift economic recovery and has been fuelled by the Central Bank's stimulus and the negative real interest environment
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Mumbai: Sensex crossing 50,000 levels is a remarkable recovery of nearly double its value, as compared to the March 2020 nose dive.
"My two cents to investors with a goal-driven approach to investing would be to take a closer look at their portfolios and their set goals. Investors who may have achieved their targets may go ahead and book their profits. At this specific time, investors should pay attention to their portfolios which may need rebalancing to ensure their portfolios aren't overweight in any specific asset class. Investors must pay keen attention to the right asset allocation which is key to a balanced portfolio and vital to achieving their financial goals," says TarunBirani, Founder & CEO, TBNG Capital Advisor.
Sustained bull-run is backed by swift economic recovery and has been fuelled by the Central Bank's stimulus and the negative real interest environment. In the broader markets, we have banking, MidCap, and SmallCap indices that are trading at relatively cheaper valuations and ready to be cherry-picked, he added.
While at one level 50,000 is just a number, the fact that it has come so much faster than most of us thought a few months back is testimony to the remarkable resilience and massive potential that the Indian economy presents.
"As long as the economy delivers high nominal GDP growth equities will compound and investors should benefit from this by taking a long-term view," says Manish Gunwani, CIO-equity investments, Nippon India Mutual Fund.
The BSE Sensex index open at a record high of 50096.57 to further hit an all-time high of 50126.73.
The rally from 40,000 to 50,000 has been phenomenal, post sharp correction in August 2020 when the Sensex hit 40,000, the index has gained 10,000 points in 100 days. Pharma, IT and Metal and selective banking stocks were the major contributor for the index to surge from 40,000 to 50,000.
"The markets will remain volatile ahead of the Union Budget. The ideal strategy should be to buy on dips buy between 49,600-49,500 and keep a final stop loss at 49,200 for the same. On the other side, the market can scale higher with the uptrend wave likely to continue up to 50,800 – 51,750. The focus should be on commodities and auto companies," says Shrikant Chouhan, EVP, equity technical research at Kotak Securities.
