It took just eight months for the BSE benchmark Sensex to cover the journey from 50,000 in January this year to scale the unprecedented 60,000 mark for the first time on Friday. The strong bull rally on the Dalal Street has seen the benchmark index rising 10,000 points after hitting the 50,000 mark in intra-day trade on January 21, 2021.
"The roaring bull market is continued in the Indian market with climbing all walls of worries where Sensex has crossed the new milestone of 60,000. We are in a classical bull market like the 2003-2007 phase where this bull run is likely to continue for the next 2-3 years, said Santosh Meena, Head of Research, Swastika Investmart. However, he put a word of caution after a parabolic move in last few days because short-term correction can't be ruled out in coming days.
This year has so far belonged to the bulls as markets have scripted many historic feats. The benchmark index has gained over 25% so far this year. "Sensex mounted the 60K mark as risk appetite improved after fears surrounding Evergrande debt crisis eased. BSE found almost 60% of the stocks advancing in the first hour," said Anand James, Chief Market Strategist at Geojit Financial Services said. But he remains watchful of markets weighing in rate hike prospects as US treasury yields have begun to firm up, following Fed's taper signals.
The benchmark had closed above 50,000 for the first time on February 3 this year. Since then it has made several records from hitting 51,000-mark in intra-day trade on February 5 to 59,000 level on September 16. "Expectations of solid economic recovery and sustained growth in the next couple of years is keeping the bulls enthused," said Sandeep Bharadwaj, CEO, Retail, IIFL Securities.
According to Motilal Oswal, MD and CEO, Motilal Oswal Financial Services, "Equity market today had a historical day with Sensex touching 60,000 for the first time driven by large caps with many index heavyweights touching new highs.
The rally in the domestic market is driven by positive global cues, strong inflows by FIIs/DIIs, good corporate earnings, falling COVID-19 cases, upbeat corporate commentaries and low cost of capital, he said.
He further added that amid the buoyant sentiment and increased activity, valuations has reached elevated levels and demand consistent delivery on earnings expectations.
"Given rich valuations, one cannot ignore intermittent volatility. However, we expect the positive momentum to continue on the back of improving economic activity and recovery in corporate earnings," Oswal said.