The benchmark Sensex has recorded its fastest 10,000-points rally till date while breaching the psychological 60,000-mark on Friday.
The 30-share barometer took a total of 166 trading sessions to move from 50,000 to 60,000. The index had touched the 50,000-mark early this year on January 21.
Further, the latest 10,000-points rally has outpaced the previous such rally by a wide margin as the index had taken 415 sessions to move from 40,000 to 50,000. Most of the earlier similar rallies have taken more than 1,000 days with the only exception being when the index moved from 10,000 to 20,000 in 432 trading sessions between February 2006 and October 2007.
Market participants are attributing the current rally to a combination of factors including, strong global cues and good corporate earnings though they add that valuations are a cause of concern and one could see some amount of volatility and correction in the coming days.
"The rally in domestic market is driven by positive global cues, strong inflows by FIIs/DIIs, good corporate earnings, falling Covid-19 cases, upbeat corporate commentaries and low cost of capital," said Motilal Oswal, MD & CEO, Motilal Oswal Financial Services.
"Amid the buoyant sentiment and increased activity, valuations have reached elevated levels and demand consistent delivery on earnings expectations. Given rich valuations, one cannot ignore intermittent volatility – however we expect the positive momentum to continue on the back of improving economic activity and recovery in corporate earnings,” he added.
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