Markets

Sensex scales 60,000 as stocks continue to rally

The mood at the BSE turned bullish with the Sensex achieving the new milestone. BSE executives and brokers assembled at the exchange to celebrate the occasion.   | Photo Credit: Special Arrangement

The S&P BSE Sensex on Friday crossed the 60,000 mark to reach 60048.47, gaining 163.11 points or 0.27% with buying support. The index has risen about 10,000 points in a few days short of eight months, since crossing 50,000 on February 3.

The market had been performing well over the last few quarters owing to ‘huge liquidity, upward earnings cycle, economic revival owing to fading COVID-19 effect’, said Piyush Garg, CIO — ICICI Securities Ltd..

“However, market participants should be wary of rising inflation and resulting removal of liquidity from the system. During [calendar year] 2021, some central banks, namely Russia, Korea, Ukraine, have raised rates,” he said.

“Rising inflation risk and hence withdrawal of ultra-easy monetary policy by global central banks (mainly the U.S. Federal Reserve) may trigger a sharp rise in bond yields which can cause risk assets to correct sharply,” he cautioned.

“Hence one can remain invested with a vigilant eye on the move in yields world over which can result in sharp 10-15% correction from the current levels,” he added.

The mood at the BSE turned bullish with the Sensex achieving the new milestone. BSE executives and brokers assembled at the exchange to celebrate the occasion.

Ashishkumar Chauhan, MD and CEO, BSE, said this was “an indicator of India's growth potential, as well as the way India is emerging as a world leader during the COVID period, in addition to worldwide monetary expansion and relaxed fiscal policies adopted by world powers.”

“Indian markets are considered the best performing markets world over in last 18 months of COVID period due to astute policies and implementation of government, private sector and every one else involved. Many more investors are also joining the stock markets directly or indirectly,” he added.


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Printable version | Oct 19, 2021 12:27:24 PM | https://www.thehindu.com/business/markets/sensex-scales-60000-as-stocks-continue-to-rally/article36658388.ece

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