Sensex trading above 80,000 mark for first time; here's what analysts say
The index has gained 3,600 points since June 3, the day when results of exit polls of the Lok Sabha election were announced.
- Jul 3, 2024,
- Updated Jul 3, 2024 2:33 PM IST
The 30-stock Sensex crossed the 80,000 mark for the first time on Wednesday, rising on the euphoria of the Narendra Modi led-NDA government coming to power for the third time. Modi government’s comeback will likely lead to continuity of reforms and policies, which turned sentiment positive in the market, said analysts.
The index has gained 3,600 points since June 3 the day when results of exit polls of the Lok Sabha election were announced.
Similarly, Nifty too scaled a record high of 24,307 in early deals today. Market cap of BSE-listed firms climbed to Rs 444.58 lakh crore.
Interestingly, with the current leg of rally, Sensex has climbed 212% from its Covid 19 lows. The index hit a Covid-19 low of 25,638.90 hit on March 24,2020.
Nilesh Shah- MD, Kotak Mahindra AMC said, “Sensex milestones are a journey and not a destination. Do remember that this journey is both forward as well as backward. Nasdaq went so backwards that it took 17 years to come back to the previous peak. Invest in the market as per your risk appetite, have a long-term horizon, significantly moderate your return expectations and follow the dharma of asset allocation.”
Shrikant Chouhan, Head Equity Research, Kotak Securities said, “Sensex crossing the 80,000 mark is a big achievement for the Indian stock market. 16 years ago it was at 8800 on the day when Lehman, the leading bank in the US markets, crashed. Nine times returns in 16 years. However, four years ago during the time of Covid it was at 26000, which seems unrealistic but it is true. It gives confidence that equity markets did perform well in the long run, we need patience and confidence while investing and even after it. Based on the current domestic macros, our advice is to continue investing systematically in equities with a long term perspective."
Arvinder Singh Nanda, Senior Vice President of Master Capital Services said, "India’s GDP growth, credit expansion, and policy continuity have instilled confidence among investors, In addition to this Positive cues from global markets have helped the Sensex to reach these levels. While the long-term outlook remains positive, it is prudent to be cautious at current levels."
The 30-stock Sensex crossed the 80,000 mark for the first time on Wednesday, rising on the euphoria of the Narendra Modi led-NDA government coming to power for the third time. Modi government’s comeback will likely lead to continuity of reforms and policies, which turned sentiment positive in the market, said analysts.
The index has gained 3,600 points since June 3 the day when results of exit polls of the Lok Sabha election were announced.
Similarly, Nifty too scaled a record high of 24,307 in early deals today. Market cap of BSE-listed firms climbed to Rs 444.58 lakh crore.
Interestingly, with the current leg of rally, Sensex has climbed 212% from its Covid 19 lows. The index hit a Covid-19 low of 25,638.90 hit on March 24,2020.
Nilesh Shah- MD, Kotak Mahindra AMC said, “Sensex milestones are a journey and not a destination. Do remember that this journey is both forward as well as backward. Nasdaq went so backwards that it took 17 years to come back to the previous peak. Invest in the market as per your risk appetite, have a long-term horizon, significantly moderate your return expectations and follow the dharma of asset allocation.”
Shrikant Chouhan, Head Equity Research, Kotak Securities said, “Sensex crossing the 80,000 mark is a big achievement for the Indian stock market. 16 years ago it was at 8800 on the day when Lehman, the leading bank in the US markets, crashed. Nine times returns in 16 years. However, four years ago during the time of Covid it was at 26000, which seems unrealistic but it is true. It gives confidence that equity markets did perform well in the long run, we need patience and confidence while investing and even after it. Based on the current domestic macros, our advice is to continue investing systematically in equities with a long term perspective."
Arvinder Singh Nanda, Senior Vice President of Master Capital Services said, "India’s GDP growth, credit expansion, and policy continuity have instilled confidence among investors, In addition to this Positive cues from global markets have helped the Sensex to reach these levels. While the long-term outlook remains positive, it is prudent to be cautious at current levels."