Sensex Holds On To 52,000 Levels With Gains Of Over 500 Pts: Here’s Why?

On global cues that show a sign of improved pace of economic recovery world over as the roll out of Covid 19 vaccine is underway, markets world over cheering. And amid it, while Nasdaq hit a record high in the previous session, Asian markets were also near their record highs today. And in line, Indian indices hit their respective highs with Nifty Bank hitting a new record high. Here are below listed reasons for the cheer on the D-Street:

1. Global market enthusiasm:

World over there is enthusiasm of a better recovery rate from the slowdown even as the Fed recently flagged slow economic recovery in the US. Also, the US President on Friday pushed for the much awaited $1.9 trillion US coronavirus aid to spur the economy.

2. Better earnings:

For majority of the corporate there have come in better Q3 results than expected with banks' prominently Moody's said the slippages situation shall be less bad owing to recovery in sight. And on the back of it, major push in today's trade has been lent by the financial and banking pack, with Axis Bank leading the list of gainers. And because of it there are expectations that companies' would see earning upgrades.

3. Markets cheering macros:

IIP for the December month revealed growth rate by 1 percent. Also, retail inflation comes at above 4 percent and this controlled inflation level may push the RBI to increase rates in the near term.

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