The Brief: What’s Fuelling Stock Market Bull Run
Stable economic growth and strong corporate earnings add to sentiment.
Stable economic growth and strong corporate earnings add to sentiment.
In a matter of 41 trading days, since the last life-high on February 16, the second wave of the Covid-19 pandemic has caused between 8% -9.8% correction in the benchmark equity indices until April 19.
The Covid-19 pandemic failed to affect the bulls’ spirits, as benchmark indices saw absolute annual gains between 75.2% and 117.2% while FPIs pumped in a record ₹2.74 lakh crore into equities.
Absence of new taxes, no tweaking of older ones, infrastructure capex focus, and stronger disinvestment intent boosts equity indices, with the Sensex recording its best Budget-day gains since 1997.
While the mutual fund industry assets under management crossed ₹31 lakh crore, MFs continued to reel under record–high redemption pressure in December. What would the new year bring?
Fears over a new strain of the Coronavirus, discovered in the U.K., hit India's stock market on Monday, with benchmark equities witnessing the hardest fall in the past seven months.
Although bourses are roaring, SEBI data shows mutual fund managers have been playing smart by continuing to be net sellers of equities, even in the month of November.
Foreign portfolio investors have seen ₹60,358 crore net inflows in equity, helping reverse March’s record equity outflow of ₹61,973 crore.
The S&P BSE Sensex closed above 40,000 points on Wednesday after nearly five months. It has gained more than 4,190 points in 27 trading sessions since September 19.