SENSEX and NIFTY50 have been showing a consistent bull run from the last week. The ones who have been associated with the Indian stock markets very well know that such sights are rare to witness. It clearly indicates either to a strong recovery from a huge fall in the past or a bull run, and fortunately, in our case, it is both.
As on 9th Oct 2020, SENSEX was back to around 40,500 levels, which is at par to the all-time high of SENSEX, which was achieved in the month of Feb 2020. Few more days dominated by the bulls and SENSEX will break the February levels making SENSEX discover new all-time high levels yet again.
The story remains the same for NIFTY50 as well. As on 9th Oct 2020, Nifty50 is about to touch the 12,000 mark. The highest mark ever recorded for Nifty50 is 12,356 which was recorded in the month of Jan end 2020. Few more days, and Nifty50, just like Sensex might make new records.
How viable is it for the Indian markets to achieve and sustain these new levels?
History is witness that Indian stock markets have always been increasing and growing from the day they were started. Apart from the downfalls, Indian stock markets, just like the Indian economy, is on the growing stage. It is expected to be in the same mode for the coming years as well.
After the COVID-19 hit, the stock markets all around the world seems to have recovered. Many countries and their stock market have even achieved new levels after COVID lockdowns. American and Chinese stock markets tops the list.
Although it is strange to see that Indian stock markets which are now being considered as the ideal place for investors for best returns were still in the recovery phase rather than being back to the growing stage. Still, keeping in mind how American and Chinese stock markets have achieved new heights, it is no strange for the Indian stock markets to join the league. When and how is the only question.
What are the potential factors that could continue the bull run in India?
Currently IT, Pharma and Tech are the sectors leading the market. One of the major contributors to Nifty and Sensex is yet to show its real colours. Bank nifty or the banking stocks, in general, are still nowhere near to their mark as on Feb-March 2020. Currently, bank Nifty is at around 23,000 levels, unlike the 32,500 levels that they used to be at. All the major banks like SBI, ICICI, HDFC are still available in the market at 30-50% discount rate than their highs. It can easily push Nifty50 another 500-1000 points ahead taking it instantly to 13,000 very soon in the coming few months if bank nifty rises again.
Conclusion
Without a doubt, with the expected reasons, it is very much possible for the market to break all old records. Once the blue chips like Reliance, SBI and others join the party, it would be hard for the bears to survive.
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Disclaimer: Views expressed on MoneySymphony.com are just an expression of thoughts. To no extend we are or should be held liable for any losses or conflicts. MoneySymphony.com suggest users take advise from certified experts before taking any actions or investment decisions. User actions may carry risk. All decisions remain the sole responsibility of the individual only.
Interesting stuff