The core indices showed strong growth on Thursday after an increase of 4% and the end of the short week with an increase of 13%. Reports of a second government stimulus package, negotiations between the major oil companies on reducing production and the optimism that the gap between the Covid-19 companies is narrowing have all contributed to investor sentiment.
For the third consecutive session, foreign investors were enthusiastic buyers. They bought shares for 1,738 Croatian rupees, and bought shares for 4,200 Croatian rupees in three sessions. Sensex closed with 31,160 points, an increase of 1,266 points or 4.2%, while 90% increased with 363 points or 4.15% to 9,112 points. These two indices are currently almost 20% higher than their last low of 23. Mars.
The press reported that the government was considering a second economic stimulus package worth Rs 1 trillion to support small and medium-sized enterprises (SMEs). Last month, the Centre announced a stimulus package from Rs. 1.7 trillion, which includes direct remittances and food security measures to break the deadlock and overcome the economic consequences of the pandemic.
As oil prices continue to fall, the government has some fiscal room for manoeuvre, which it hopes it will use to announce additional stimulus measures, said Saoorab Muherjea, the founder of Marcellus Investment Managers.
The hope that the lock-in effect will produce positive results in the coming days has also stirred the mood.
Overall, the number of new cases is decreasing or increasing. So people are sure there’s light at the end of the tunnel. The question is whether the decline will continue after the blockade has been lifted or whether, in some cases, there will be an increase, according to Muherjea. Market analysts have determined that valuation has become reasonable for most industries, advising investors to build stocks with strong balance sheets, market leadership and quality management.
Future market developments will depend on whether or not the 21-day blockade is extended, as well as the nature of the restrictions in the coming days, according to analysts.
We haven’t tested enough compared to other countries. We’re ahead of the lockdown schedule. The way things develop with regard to the blockage will be an important factor in whether the index will remain at this high level, said Abhimanyu Sofat, head of retail research at IIFL Securities.
However, some analysts have been skeptical about this week’s sharp rise. There must be some kind of stopover during this rally. It is agreed that restrictions, in whatever form, should be introduced by means of the fourteenth amendment. April. If we are still under lock and key, it means that the crisis in Covida 19 has not yet been resolved and that it will take some time. Many industries will not work, which means there will be another economic downturn, said market expert Ambaresh Baliga.
The size of the market is positive: The total number of shares outstanding was 1,872, while the number of BSE-related shares outstanding fell to 538.
All but four Sensex units finished the session with a victory. Mahindra & Mahindra was the leader in the sale of Sensex shares with an increase of 17%. Maruti and Titan increased by 13.2% and 11.1% respectively. All BFE industry indices closed the meetings at a profit. Cars and consumer durables rose the most, with price increases of 10.3% and 7.1% respectively.
Sensex, at the bull market.
The benchmarks are at the top of the bull market, a term that refers to an increase of 20% compared to the recent lows. Sex and Nifty has reached the age of 23. In March it reached about 19.8% of its lowest level, i.e. 25,981 and 7,610 points.
Asian counterparts such as South Korea, the Philippines and Indonesia have already penetrated bullish technical markets, with an increase of more than 20%. The rally in American shares was stronger: The Dow Jones industrial average rose 26% from its low point in 2020. Most stock exchanges are bullish, but given the uncertainty about the spread of Covid-19 and the damage to the economy nobody wants to call it that. Many people consider these rallies to be a feature of the bear market. We expect the current recovery to be bearish and less sustainable, says Jimeet Modi, founder and CEO of SAMCO Securities. Although many believe that the markets will eventually withdraw, few are convinced that they will put the March lows back to the test. However, the CLSA has a theory that calls the bottom of the market. This bear market may have reached the point of capitulation in March, but it will probably be followed by a period of apathy and reduced volatility if we reach the point where investors are concerned about investing in stocks, says the broker in a note.