Sensex scales mount 60K: Here's what to expect ahead

Indian benchmark indices scaled record highs on Friday, with the Sensex crossing 60,000 mark for the first time led by gains in information technology (IT) and realty stocks. The 30-stock index rose 448 points to an all-time high of 60,333 against previous close of 59,885. Nifty gained 125 points to a record peak of 17,947 today.

Indian equity markets were on track for their fifth straight weekly gain, amid diminishing fears of a possible third COVID-19 wave due to a fast-paced vaccination campaign.

Infosys share led the gains from the IT pack, scaling all-time high of Rs 1,787 on BSE. HCL Tech stock too zoomed to a record peak of 1,377,rising 3.69% against previous close on BSE.

Share of another IT major Wipro zoomed to an all-time high of Rs 698.95 on BSE. BSE IT index zoomed 843 points to its all-time high of 36,619 against previous close of 35,776.

 Also read: Sensex @60K: Investor wealth zooms 158% since March 2020 lows

Realty shares too saw their BSE index hitting all-time high of 4,067 compared to previous close of 3,936.

Market cap of BSE-listed firms rose to Rs 263.13 lakh crore today against previous close of Rs 261.74 lakh crore.

The benchmark indices have rallied over 60% each in one year on relief measures by the government for the Covid-19 affected economy.

Of late, the rally has intensified, defying weak global cues as the Indian economy is looking up, Covid -19 cases are falling and rate of vaccination is picking pace.

Sensex has gained 64.90% or 23,717 points and Nifty has risen 65.68% or 7,098 points in one year.

With Sensex and Nifty scaling record peaks today, here's a look at what analysts said about the ongoing market rally:

Santosh Meena, Head of Research at Swastika Investmart said, "We are in a classic bull market like the 2003-2007 phase where this bull run is likely to continue for the next 2-3 years.

However, I will put the word of caution after a parabolic move in last few days because short-term correction can't be ruled out in coming days. Global indices like Dow Jones and Dax are near to their critical resistance and may witness a correction. We are in a strong uptrend and outperforming global markets while some mean reversion can be seen in the coming days where rising crude oil prices and surge in US bond yield could cause near-term volatility."

Motilal Oswal, Managing Director & CEO, Motilal Oswal Financial Services said, "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."

Nish Bhatt, Founder & CEO, Millwood Kane International said, "Not only, institutional investors but also the retail investors provided legs to the current market rally.

India saw millions of new retail investors entering the market as interest on bank deposits dipped. The number of Demat accounts has crossed 50 million.

The rally in the market is on prospective unlocking, the pace of Covid-19 vaccination despite a huge population. The demand push during the festive season coupled with an earnings upgrade for the market is another positive.

The rally along with Fed's commentary on tapering may have some bearing on the RBI's policy announcement next month."

Hemant Kanawala, Head - Equity, Kotak Mahindra Life Insurance said, "We believe that the interest of foreign investors in Indian markets will sustain due to continued policy support from the government and the accelerated pace of vaccination, offering incremental growth visibility. India's average daily vaccination run rate in September has seen a 48% jump to 8.1 mn doses compared to 5.4 mn doses in August. This augurs well for economy as well as investor sentiment."