Nifty50 opens higher for 7th straight day, nears 21,000 mark
Nifty50 index is nearing the important 21,000 mark, just 40 odd points away as it experiences its seventh consecutive session of gains. This surge is fueled by investor optimism following India's impressive 7.6% economic growth in the September quarter and the ruling party BJP's decisive victory in three out of four critical state elections. The market capitalization of NSE-listed companies has crossed the $4 trillion mark for the first time.
Since COVID-19 lows, Nifty50 rebounded nearly 180%
Since the COVID-19 lows of 7,511, the Nifty50 has delivered an astounding 179% return, reaching a new peak of 20,958.65 points. Vinit Bolinjkar, Head of Research at Ventura Securities, advises investors to shift their focus to large-cap stocks as the Nifty Midcap and Nifty Small cap are trading at higher valuations. He anticipates a correction in both indices, stating that the current premiums are unusually high.
Factors contributing to market rally
The market rally is driven by factors such as foreign funds inflow due to declining US bond yields, domestic investors' bullishness on strong macroeconomic data, and expectations of longer political stability in India. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, believes that favorable global cues from declining US bond yields also support the market. Investors expect the Reserve Bank of India (RBI) to maintain the status quo on interest rates in its monetary policy decision on Friday.
