Sensex climbs above 40,000

Sensex climbs above 40,000

With Sensex and Nifty soaring over 3% each so far this month, investors have become richer by Rs 6 lakh crore in just 5 trading sessions. The market capitalization of all BSE listed firms at the end of trading on September 30 stood at Rs 155.24 lakh crore and the same has now jumped significantly to Rs 161.07 lakh crore on the opening bell today. This has added roughly Rs 6 lakh crore to investor wealth. In the entire month of September, which was the worst for domestic equity markets since May, investor wealth gained less than Rs 1 lakh crore.

On the opening bell today, S&P BSE Sensex moved higher by 400 points or nearly 1% to cross the 40,000 mark. This is for the first time since February 25 that Sensex and hovered above the 40,000 mark. On the other hand the 50-stock Nifty crossed the crucial resistance levels of 11,800 and was sitting even beyond the 11,850 mark.

As the benchmark indices zoomed, the BSE Smallcap and the BSE Midcap index have managed to gain less than 1% each. The upward move has been aided by strong momentum in domestic equities and foreign flows. “On the domestic side, flattening out of COVID-19 active cases over the last two weeks, expectation over the economic stimulus from the Indian government and positive corporate commentaries for September quarter kept the sentiments high,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services on Wednesday.

Technical analysts believe that equity markets are the firm grip of bulls and could move close to 12,000 levels in the coming sessions. “Nifty sustained higher after the upside breakout of initial hurdle at 11550 and is now closed to move above the next important swing high of 11795. This could be an indication of the strength of bulls to surpass the hurdles. Hence, the upper hurdle of 11800 could be taken out soon,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities. HDFC Securities has a bullish outlook for stock markets with a target of 12,250.

Further the momentum in equity markets could continue with the results season now underway. “We expect the stock specific action would prevail in the market as we enter the Q2FY21 result season. In the process, we believe, broader market would endure its relative outperformance,” said ICICI Securities.

source: https://www.financialexpress.com/market/sensex-and-nifty-surge-in-october-investor-wealth-zooms-rs-6-lakh-crore-so-far-this-month/2100650/

Leave a Reply