CMD of Arihant capital market Ltd Mr. Ashok kumar Jain predicted that Sensex will cross a milestone of 50,000 mark during Investor’s Darbar on CNBC Awaaz. Today is the momentous day where the prediction becomes a reality. Let us discuss the reason behind how Sensex rallied from 40,000 to 50,000 in only in 415 trading sessions, making it the fastest rally by the index to cover 10,000 points even after the Covid Era.
- Global Market: Domestic market rallies on optimism over the new US President Joe Biden’s administration that he can gives more support to US economy that could lead the world market positively. Wall Street also expecting more economic stimulus and relief package in near future. All major indices in US ended at record high level. Meanwhile, other Asian markets also rose to new record highs on Thursday
- Foreign fund inflows: Continues foreign capital inflows into the domestic market also lift market sentiments. Foreign fund have infused net Rs 20,098 crore into Indian markets in the month of January, as participants grew more confident in view of resumption of business activities and better than expected quarterly numbers.
- Strong Corporate earnings: strong corporate earnings in Q2 by Banking, IT, Pharma, metal lifted the indices. Also the Q3 number of TCS, Infosys and Wipro provided boost to the market and expecting more fuel on Dalal Street after major Q3 number will announced.
- Better than expected GDP number: India’s second quarter GDP growth number, at -7.5 per cent, that was better than what analysts had predicted. According to Moody’s India’s GDP growth rate to reach 10.8% in the fiscal year 2021-22. compared with earlier forecast of 10.6%