Nifty Notches 18,500 On 7 Continuous Days Of Gains: Here’s Why
Despite the global markets being worrying about inflation and also facing energy and crude prices that are at record high, Indian markets are seeing relentless rally and in today's trade have fresh high of 18543 on the Nifty, while on the Sensex it is 61,962, very close to the 62,000 points.
Here we have collated few reasons why the new highs have been scaled on the Indian indices:
Inflation concern already discounted
While inflationary is a threat worldwide and has propelled some of the major economies to consider rate hike, Indian markets have been resilient and the markets have already said to have discounted this factor.
Sitharaman's statement that India not in a hurry to withdraw stimulus soon
In a statement today, the country's FM said while there are no short term plans to take back the stimulus, there is a threat of huge oil cost, which can derail the country's plan of getting back on revival mode.
Commodity cycle run
Metal stocks have been the top performing with most of the commodities hitting their record high and the rally is also going to see an uptrend as there is a call by some of the companies' that they cut down on production of metals like Zinc given the huge power cost amid power or energy crisis.
Bank stocks continue to outperform
In the strong rally thus far ever since the pandemic struck the globe, the sector that lagged has been the banking space which is now catching up and now as with the economic revival amid increasing vaccination pace, there is also an increasing credit offtake, that is helping banking counters.
Mutual fund inflow driven stock market rally
The record inflow into mutual funds for now sometime has also fuelled stock market rally as these funds ultimately make their way into the stocks.
The high demand for some of the counter hence push up the stock's price.
GoodReturns.in