The Indian market benchmarks are trading at record highs and as many as eight stocks - Asian Paints, Mahindra and Mahindra, Maruti Suzuki, Sun Pharma, Tata Steel, Tech Mahindra, Titan and UltraTech Cement - hit their fresh 52-week highs on December 4.
Sensex hit an all-time high of 45148.28 and Nifty made a fresh high at 13,280.05 in intraday trade. Finally, Sensex settled with a gain of 447 points, or 1 percent, at 45,079.55 and Nifty ended at 13,258.55, 125 points or 0.95 percent higher.
The market is riding the optimism with respect to the COVID-19 vaccine while the RBI MPC today signalled that the growth is coming back gradually.
The RBI Governor Shaktikanta Das said the rural economy looks resilient.
"Government borrowings have been smooth so far and corporate bond spreads have narrowed to pre-pandemic levels. RBI's role as debt manager and banker to the government was tested to the hilt. Nascent signs of recovery are visible in H2FY21," he said.
He underscored that the signs of recovery are far from being broad-based and dependent on sustained policy support. A small window is available for proactive supply management strategies, Das said.
"It was hence decided to maintain the status quo in policy rates. The year 2020 has been extremely challenging and our determination to fight and overcome stood out in this difficult year," Das said.
"Projection for H2FY21 is positive +0.1 percent for Q3 against -5.6 percent earlier and +0.7 percent for Q4 against +0.5 percent earlier. Real GDP growth for FY21 projected at -7.5 percent," said Das.
Gaurav Dua, SVP, Head – Capital Market Strategy & Investments, Sharekhan by BNP Paribas highlighted that growth remains high on the priority of RBI.
"Though the policy rate remains unchanged for the third time, the monetary stance likely to remain accommodative for an extended period of time," he said.
"The commentary is dovish in spite of the elevated level of inflationary pressure. It essentially means the liquidity situation would be comfortable and interest rates likely to remain soft in the near-term. The policy outcome is supportive for equity markets in general and interest rate sensitive sectors and economic recovery plays in particular," he said.
The trends of the market show that the bulls are not ready to let go, as the market benchmarks did not see much consolidation since the beginning of November. After each session of fall, the market resumed its uptrend.
In the recent past, the market has hit scaled fresh peaks many times and top brokerages still see further upside in the index.
Global brokerage house Goldman Sachs upgraded India to 'overweight' and said the Nifty50 may hit 14,100 by 2021-end.
Nomura is of the view that the Nifty may hit 13,640 by December 2021.
Brokerage firm Prabhudas Lilladher is bullish on the Indian market and expects the Nifty to hit 14,407 in 15 months.Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.