The market has zoomed to new highs for calendar 2017.
Investors started booking profit at record highs in absence of cues from global markets that remained closed for the New Year holiday.
Citing the impact of the second wave of the pandemic over the economy and consumer sentiment, Swiss brokerage Credit Suisse has lowered its nominal GDP growth forecast by 150-300 bps to 13-14 per cent, but expects a stronger recovery in the second half as it sees the lockdowns having limited impact on tax collections. Last month, Neelkanth Mishra, the co-head of equity strategy for Credit Suisse Asia Pacific, and India equity strategist, had told PTI that he expected the real GDP to fall to 8.5-9 per cent in FY22 due to the more severe pandemic attack. The virus case load has crossed the 25-million mark, death toll from the same is nearing 2.9 lakh mark, which is one of the highest in the world as the test positivity rate has been around 15 per cent for long.
Among the Sensex 30 stocks, new entrant Sesa Goa soared 22 per cent to Rs 187, while TCS rose 11 per cent to Rs 2,023.
Any change in rates would mean more volatility; else, poll outcome-fuelled rally expected to continue.
Markets went off the rails as Sensex crashed 1,689 points and Nifty over 541 points in early session after a surprise Donald Trump win and the government's move to withdraw high value notes, but managed to pull back towards the fag-end of the day to close 339 points lower.
The stock market will most likely see bullish trends this week in the run up to Union Budget as investors pin hopes on strong reform measures to rev up the economy, say experts.
Markets ended in red; index heavyweight under pressure.
Omkeshwar Singh, Head, Rank MF, a mutual fund investment platform, answers your queries.
'The pressure on relative performance and the feeling of being left out among many investors may also account for the belief among many that this has to be a technology stock bubble.' 'The feeling of a bubble is also reinforced by the extreme performance gap between growth and value investing.' 'While at first glance, one can only stand back awestruck by the wealth creation delivered by technology stocks globally. It does not seem at all like the internet bubble of 1999-2000, says Akash Prakash.
The stock markets are seen taking temporary support at 12,500 for the Sensex and 3600 for the S&P Nifty before heading lower in the coming days.
BSE Midcap and BSE Smallcap indices settled the day 0.7% and 0.9% higher
Construction major L&T was the biggest gainer among the Sensex components, spurting 2.30 per cent, after the company said its board has approved a Rs 9,000-crore share buyback plan.
The 50-issue NSE Nifty too cracked the 10,200-mark and hit a low of 10,108.55 before finishing 104.75 points, or 1.02 per cent down at 10,121.80.
ICICI Bank extended yesterday gains, rising 10% in two trading sessions
'The government's projections for 2019-2020 will be disappointing big time.'
The sentiment around Indian equities remains positive and unchanged.
Of the 30-share Sensex pack, 22 ended with losses while NTPC ended flat at Rs 127.30.
The markets opened in positive territory on Wednesday.
NTPC, Sun Pharma Coal India and Asian Paints were among top losers on BSE Sensex
Sensex surged 486 points or 1.9%.
As the bull-run in Dalal Street gathers pace, people keen on riding it are looking to arm themselves with new tools and techniques.
Ajit Mishra, vice president, Research, Religare Broking, answers your queries.
The Sensex has hit its lowest level since August 29, 2016 whereas the Nifty hit its lowest level since Sep 12, 2016
Top gainers in the Sensex pack included Hero MotoCorp, Maruti, M&M, Bajaj Auto, HUL, HCL Tech, Bajaj Finance, ITC, HDFC and L&T, rising up to 7.51 per cent.
Volatility might continue as the Chinese market is expected to open sharply lower, following a long break
The NSE Nifty settled the day 38.85 points or 0.37 per cent lower at 10,500.90 after shuttling between 10,590.55 and 10,456.65, intra-day.
Sensex eneded 374 points higher on rate cut expectation from the RBI.
The broader NSE Nifty moved between 10,705 and 10,785.55, before ending 25.15 points, or 0.23 per cent down at 10,716.55.
Of these 26, Bajaj Finance, Associated Alcohols and Breweries, Garware Technologies, Filatex India, Tasty Bite Eatables, Aarti Industries and GMM Pfaudler saw an over 10-fold surge in price since 2014.
'Our discussions with investors and the market's multiples suggest that Prime Minister Narendra Modi winning 2019 is being priced in,' says a UBS report.
US election results may not reverse Indian markets' bearish trend, says Devangshu Datta
The Sensex closed higher by 170 points at 26,128 and the Nifty rose 59 points to end at 7,943.
Given that the ETF has given exceptional returns over the past year, start small and buy more in a staggered manner.
Global funds have pumped in over Rs 38,000 crore (about $5.5 billion) into domestic equities since February 20, helping the Sensex rebound 2,671 points, or 7.6 per cent, from its 2019 low.
From the valuation angle, the market is showing similar signs of being over-valued without being in a bubble territory yet.
