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Below are Perspective on Nifty hitting a new ATH by Mr. Hemang Jani, Head Equity Strategy, Broking & Distribution, Motilal Oswal Financial Services

Nifty today finally managed to breach its previous all-time high of 15431 made in Jan’20 - touched new all-time high of 15,455. After 2-3 months of consolidation, the month of May finally took the lead with MTD gains at 5.6% so far vis-a-vis near lull phase spread over previous two months [March +1% & April -0.4%]. Comfortable Liquidity (due to lack of avenues to deploy) globally and the strong commodity cycle (metals, sugar, agro chemicals) took the market to new highs.

The global cues have been positive as reopening of economies in western countries and encouraging economic data points towards quick global economic recovery. Further pledge by U.S. Federal Reserve along with host of other Central Bank policymakers to keep monetary policy loose despite recent signs of an uptick in inflation has abated the concerns so far.

Even domestically, with fresh cases subsiding continuously, investors are upbeat about the unlocking of economy in June which will help revive commercial activities. Healthy earnings season with strong growth momentum lent support to the market. Hopes of further stimulus by government is also bolstering investor confidence. Thus, as the 2^nd Covid-19 wave continues to recede in India and pace of vaccination expected to pick up from next month, we expect the long term fundamentals to remain intact and the journey to become little smoother. “

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