IGI Logo

Below is the Equity market opened gap up and touched yet another milestone with Sensex touching 60,000 by Mr. Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd.

Equity market opened gap up and touched yet another milestone with Sensex touching 60,000 for the first time. However it witnessed profit booking in the latter part of the session, thus ending the day with marginal gains. Except, IT, Auto and Realty all other sectoral indices ended in the red with Metal, FMCG, PSU Bank and Power indices down 1-2%. Broader markets were mixed bag. Global cues were weak as investors remained concerned about the China debt crisis and got worried at the sharp rise in bond yields. Even weak German business confidence data prompted investors to book partial profits after a mid-week rally.

Domestic sentiments are buoyant as economic recovery is faster than expected and is well reflected in improving macro-data points. In addition, strong liquidity, falling Covid-19 cases, healthy vaccination drive, upbeat corporate commentaries and low cost of capital too provided support to this rally. However the valuations have reached stratospheric levels especially for lot of the desired high quality names across sectors. Thus bottom-up stock picking approach is becoming difficult for investors. Traders should have cautious approach as intermittent volatility cannot be ignored given such rich valuations. However we expect the positive momentum to continue on the back of recovery in corporate earnings.

Above views are of the author and not of the website kindly read disclaimer