Selected buying of stocks pushes Sensex above 38,000 pts

Source: The Hitavada      Date: 10 Aug 2018 10:17:41



Business Bureau

THE barometer of the economy the -- Sensex -- for the first time in its history conquered the 38,000-point mark to close at 38,024.37 points and Nifty at 11,470.70 on account of continuous buying by FIIs and MFs on Thursday.

CA Kailash Jogani said that investor sentiments were running high as the broader economic parameters were looking up. Investors were expecting monsoon to be good this year. Also, the first quarter results of FY2018-19 were as per market expectations which reflected a sense of confidence among investors.

Even though RBI had raised interest rate by 0.25 bps, market had discounted it. Also, it was being excepted that rupee would be sliding towards 70-mark against US dollar. Being an election year, most bad news would be digested by the markets. Jogani predicted the Sensex to be at 40,000 points and Nifty in the range of 11,800-11,900 by end-December. All eyes were on upcoming State elections which would determine the future course of direction of stock markets, Jogani added.

The current stock market rally was piggybacking on very few select stocks, said CA Nirav Panchmatia, Founder CEO, AUM Financial Advisors. Only 6 stocks out of 50 Nifty stocks, had gone up while around 44 stocks were down. Even though Sensex and Nifty were making record high, most investor portfolios were not experiencing appreciation.

He expects the period till June, 2019 to be volatile as we are going to have 4 State Assembly elections followed by the very crucial Lok Sabha elections. This brings uncertainty in the markets which markets do not like. According to Panchmatia, investors should play this year very carefully as this shall be a news-driven year but at the same time any negative news flow would provide an opportunity to buy at dips.

Panchmatia, who appears regularly on CNBC and Bloomberg on The Mutual Fund Show, reiterated that investors were in the middle of a bull market and that this election year was only an interval that had to be tackled intellectually and professionally. The coming decade would be the best decade ever in the stock market and the bull thesis was intact, Panchmatia added.

CA Julfesh Shah said that the inflow of foreign funds, healthy buying in consumer durables and banking had pushed the Sensex to above 38,000. The macro economic outlook was broadly favourable for India and economic growth was forecast to rise on strengthening investment and robust private consumption. Banking stocks were sparkling with ICICI Bank, Axis Bank, State Bank of India topping the Sensex gainers list. Uninterrupted foreign and domestic fund inflows and robust corporate earnings showed that investor sentiment remained skewed towards Indian equities.

Investors could judiciously and wisely stay invested in fundamentally strong scrips.CA Sameer Bakre said that the rally was being fuelled by huge inflows by foreign and domestic investors on expectations of good monsoon this year, which would give a boost to rural economy and push sales of fast moving consumer goods (FMCG) products. Also, the National Company Law Tribunal (NCLT) was bringing out sweeping changes in the management of companies and addressing the non-performing assets (NPAs) issue in banks.

The investors were expecting that the coming elections would be favourable for the ruling party. CA Anand Daga said that Indian market climbed a wall of worries with respect to trade wars brewing between the two biggest economies -- US and China -- as well as falling rupee-dollar and volatile crude oil prices. Reliance Industries, ICICI Bank, State Bank of India etc, contributed to gains as investors continued to pump money into bluechips, while ignoring mid- and small-cap shares which still had upside left to reach newer heights in coming time, he further added.


April 26, 2017 30,000 points
May 26, 2017 31,000 points
July 13, 2017 32,000 points
October 25, 2017 33,000 points
December 26, 2017 34,000 points
January 17, 2018 35,000 points
January 23, 2018 36,000 points
July 26, 2018 37,000 points
August 9, 2018 38,000 points