It was a historic week once again for the markets with the Nifty hitting the 10,000 points for the first time on Wednesday. However, there was selling pressure on Friday, which dragged the Nifty below the 10,000 points, only for recovery later in the day.
The p/e multiple of Sensex stocks has crossed the long term average for these Sensex stocks by a distance. We have suggested a few risk free stocks that you can buy
This week a positive development for the markets was the political developments in Bihar. It is widely believed that the support of BJP for the Nitish Kumar government would strengthen the election prospects for the BJP in the 2019 general elections. This boosted the markets on Thursday, only to see selling pressure emerge.
Shares in companies that declared good results continued to attract buying support. HDFC Bank and Reliance Industries which have propelled the markets in the last few weeks continued to push the markets higher. Dr Reddy's Laboratories, which reported a dismal set of results saw its share price tank.
Going ahead it would be sensible if investors exercise caution. Markets are looking dangerously overvalued and one bad event could lead to a sharp and sudden collapse in the markets. It maybe a good idea to stay invested in select companies that declare a good dividend.