Benchmark indices which had a breathtaking rally this week after it became clear that Joe Biden would win the US President elections, may continue to rally next week. The 5 per cent rally on the Sensex this week came as staggering amounts were invested by Foreign Portfolio Investors.
In fact, the Sensex may breach the record highs it hit of 42.400 points. The Sensex has now jumped from a low of around that 26,000 points level hit in March to near record highs this year, thereby showing unprecedented volatility.
In March earlier this year it had hit a low below the 26,000 points, after covid-19 worries caused great anxiety. However, since then the rally has been solid led by Reliance Industries and banks, which were the last to rally.
One of the factors for the rally has also been a sharp recovery in economic activity and economists are now pointing to A V shaped recovery.
Biden wins US Presidency
After nearly a week of counting, Democrat candidate Joe Biden won the election to become the 46th president of the United States of America, according to various American network news channels.
The news comes after Biden beat Trump at the battleground of Pennsylvania, which helped him cross the 270 electoral votes he needed to win. With 20 electoral votes from the state, Biden won a total of 273 electoral votes.
"America, I'm honored that you have chosen me to lead our great country. The work ahead of us will be hard, but I promise you this: I will be a President for all Americans - whether you voted for me or not. I will keep the faith that you have placed in me," Biden said in a tweet.
We might see global markets rally sharply in the next few weeks and it is likely to be a good ending for the markets this year. However, investors who have been waiting on the sidelines, should not jump in, as markets have rallied sharply in the last few months.