Search This Blog

Wednesday, April 26, 2017

Modinomics at Work: BSE Sensex Scales New Highs


Indian stock market indices scaled new highs on Wednesday with the Sensex breaching the 30,000 mark. The Nifty crossed 9,300 for the first time. The latest rally comes amidst renewed investor confidence in Indian economy and bullish sentiments overall.

Indian stocks have gained over 12% already this calendar year, outperforming global markets. Foreign investors and analysts have reaffirmed their faith in the present leadership; have resumed buying after a brief pause of two weeks. The sentiment was echoed by investment guru Mark Faber who said that he would prefer India to the US for next 10 years as he believes Modi would perform better than Donald Trump.

Unlike previous bull runs which ended in stock market bubbles, the latest rally has been driven by fundamentals so far. Bellwether Reliance has been a major contributor, rallying nearly 40% riding the Jio wave which shook the Indian telecom industry. Infrastructure stocks have bounced back smartly with the hopes of better conditions as the central govt speeds up investment by removing hurdles and restructuring languishing projects. Banking and finance sector too are looking up, after the RBI took strict measures to recognise and resolve long pending NPA issues, a legacy of the previous govts.

As the worst of Demonetization effects, which were mostly over-hyped by some dubious ‘analysts’, seem to be over, the public has reaffirmed its confidence on the central govt and investors are making a beeline to invest in the India growth story. If the economy sustains the momentum to grow at 9-10% as the finance minister Jaitley confidently says, 40,000 may not be too far for Sensex.

 

Karnataka Express Bureau.

No comments:

Post a Comment

Modinomics at Work: BSE Sensex Scales New Highs

Indian stock market indices scaled new highs on Wednesday with the Sensex breaching the 30,000 mark. The Nifty crossed 9,300 for the firs...