Samvat 2077 started on a positive note for the fairness markets with the benchmark Sensex ending the ceremonial one-hour-long trading session with a gain of 195 points on Saturday. The Sensex ended the session at 43,638, a 0.45 per cent gain, while the Nifty 50 index ended with a gain of 0.47 per cent, or 51 points, to end at 12,770. Amongst Sensex stocks, Bharti Airtel used to be the most efficient performing inventory and rose 1.2 per cent.
“Positive sentiments as a result of recent rally, continued FPI inflows and affect of gain in US markets overnight led to modest gains in Indian markets. Though trend in muhurat trading session does not resolve that for the whole year, it gives a good feeling to begin on a positive note,” said Dhiraj Relli, MD & CEO, HDFC Securities.
Buying shares on muhurat day is thought of as auspicious by some market participants. Nirav Gandhi, 52, said he’s more circumspect on index stocks this year as the indices are back to all-time highs. “I bought shares from the mid-cap universe as I feel the returns from mid and small caps this year will be better than index returns.,” Gandhi said. Most investors indulge in ceremonial purchases. Institutional investors and brokers commerce to price in global cues or key news developments whether any.
Samvat 2076 used to be a curler coaster for markets as they were reeling under the onslaught of Covid-19. After hitting a new high in January, the indices fell nearly 40 per cent. The pandemic used to be like a nail in the coffin to the markets which have been reeling under a bunch of issues including low economic growth, corporate defaults and stress in the financial sector.
Many market participants said Samvat 2076 used to be paying homage to 2008 financial crisis and the dot com bubble in 2002. Then again, the monetary easing by central banks across the globe and the advent of retail investors who became active in day trading because of lockdown induced restlessness helped the markets to bounce back.
And final week the indices hit new highs enthused by the election leads to the USA and progress in covid-19 vaccine trails. The monetary easing made a recovery used to be as swift as the fall. The benchmark indices have gained 70 per cent from their March lows to scale new all-time highs.
“With recent news on the progress of an effective vaccine against covid-19, we appear closer to the end of a difficult period. Despite a year where governments had to balance the physical well-being of citizens and economic stability, financial markets have in large part worked efficiently. As the combination of fiscal and monetary stimulus kicks in together with a broad re-opening of the economy, we will expect earnings growth in a coming couple of years to be robust,” said S Hariharan, head – sales trading, Emkay Global Financial Products and services.
Corporate earnings growth would be the most a very powerful factor in driving the markets in the next year. While some analysts said that the trend of a handful of companies driving the markets could return.
“Inside the index, the well-run companies were stable even in the wildness of the final 12 months. The polarisation theme prevalent in the previous couple of years in our country of a dozen companies giving stellar returns and others struggling will continue. In a challenging surroundings, smart companies will glitter and weak companies all by the wayside. And that’s the consistent theme in the final five years,” Saurabh Mukherjea, Founder, Marcellus Investment Managers.
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Compiled by BS Research Bureau
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