So what is Diwali known for?
The victory of good over evil, Lord Rama’s victory over Ravana and his return to Ayodhya after a gap of 14 years.
But then is this the only thing people would remember this Diwali? NO!
It will be known as the first day since Jan 2008 when the Sensex crossed the 21,000 mark again. During the confident session of trading in the Mahurat session, the Sensex crossed 21k to finally close at 21,012. The Nifty gained 33 points to reach 6314 points. It is just 44 points short of its all time record of 6358.
The strong trading on the BSE was made possible by companies like SBI, ICICI Bank, M & M, TCS and Hindalco among others. What makes this rise an achievement itself is that this is only the fourth time in history that this happened.
So, what were the factors which enabled such a meteoric rise? What is the future?
The various economic parameters look to be very strong pointing to increasing growth of the economy. The prime reason for the growth has been the strong performance by the different industries across the country. The overseas sentiment on India’s growth pattern and economy is also very strong.
The net FII inflows have increased amazingly since the time the Sensex fell to a low of 7,700 in October 2008. They have added US $ 44 billion to the Indian stock market thus resulting in it reaching thrice its value in two years.
Normally the FII book some profits towards the end of the year. This may result in corrections in some markets. But this time since they have made a lot of money, they may keep selling. The chances for rupee depreciation as we go forward with rising oil prices are another indication for FIIs to keep selling.
Another important issue to look forward too for all the players is the government prices for the divestments coming up.
All in all we are set for some interesting economic times ahead! What do you think – Do you see Indian Stock Markets reaching newer heights in near future or will we see correction after this?