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The S&P BSE Sensex rallied from 24,000 to a fresh record high of 31,000 in the last three years of the Modi-led government. The rally has been nothing short of fast and furious as more than 50 stocks gave over 1,000 percent return in the same period.
The Indian market was akin to a gold mine for investors as many policies and reforms in areas of banking, infrastructure, real estate, roads & highways, ports, foreign direct investment, manufacturing focus led to a sharp rally in stocks across sectors which are likely to benefit the most from policies initiated by Modi government.
The S&P BSE Sensex rallied over 25 percent from 24,716.88 recorded on May 26, 2014, to a fresh record high of 31,028.21 on May 26, 2017. Over 1,100 stocks more than doubled your wealth in the last 3 years.
The S&P BSE Sensex closed 278.18 points lower or 0.9 percent at 31,028.21. It hit a record high of 31,074.07.
The Nifty50 closed 85.35 points higher at 9,595.10. It hit a fresh record high of 9,604.90.
We have collated views from various analysts as Sensex reached record highs:
Dilip Bhatt, Prabhudas Lilladher
The market was in no mood to look behind. It has a phenomenal momentum with it. In the long term, this market will still give you one of the best returns, he said in an interview with CNBC-TV18. He added that equities were in a sweet spot in India after a long time.
Having said that, Bhatt cautioned regarding the short-term risks. “The market is far ahead of the earnings growth…for the short term, you could look at booking profits, but from a long-term perspective, one must stay invested in the market,” he told the channel.
Among sectoral bets, Bhatt believes banks continue to look good, especially private banks and NBFCs. However, for PSU banks, it would be prudent to wait for the NPA resolution as they lack the capital right now, he said.
Ajay Srivastava, CEO, Dimensions Corporate Finance Services
As we step into era of GST, the hiccups will come more for smaller companies than for the larger companies. The large companies are more prepared as they have been doing this work for the last one year to make the transition.
It is the smaller set of companies who are going to get caught unaware because they don’t have the bandwidth to plan this out. GST as the concept advances the tax outflow for the company.
For bigger companies, it doesn’t matter, but for smaller companies, it would be a serious problem. They will face supply disruption and their share will be captured by large companies.
AK Prabhakar, Head -Research at IDBI Capital told Moneycontrol
The market will continue to be good with US Fed unlikely to hike rate and stable currency likely to boost Indian stocks.
Advancement of monsoon is keenly watched such as fertiliser, FMCG, auto stocks in focus. Other stocks which are likely to be in focus include names like RIL, Power Grid, ZEEL, L&T Siemens, M&M, Bharat Electronics, HCL Technologies, and ICICI Bank.
Jayant Manglik, President, Retail Distribution, Religare Securities Ltd.
Nifty maintained its momentum on Friday as well and made a new record high above 9600. To start with, surge in select index heavyweights triggered a firm opening, in continuation to yesterday's rebound, which later gained momentum with buying interest in cash segment. Metal ruled the sectoral pack today, closely followed by energy, FMCG and media counters.
The week ended on a strong note and we feel it'll continue next week as well. Any dip in between should be considered as buying opportunity in index majors. However, midcap and smallcap counters should be dealt with caution as they may consolidate further prior to any significant rebound.
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