The investors are having a hearty laugh since the beginning of this year as the Indian markets are scaling new highs. Both the benchmark indices ended on fresh high closing today amid consolidation. The 30-share BSE Sensex closed at 34,443.19, which was up 90.40 points from the last close. The 50-share NSE Nifty also gained 13.40 from yesterday’s close making a high of 10,637.
The Indian markets have started their journey on a strong note this year. In the last six trading sessions, Sensex has already gained 619 points while Nifty has added 191.65 points.
The brokerage houses are bullish on the Indian market with CLSA giving a target of 12,000 for Nifty till June 2018. Most of them are of the opinion that Sensex will hover around 36,000 by December 2018.
It’s the season of Q3 earnings and the markets are optimistic about it based on the higher consumer spending figures in the festive season. Most of the stocks on the indices are hitting 52-week highs and that has renewed the investor interest in the markets.
Continuous inflows of foreign funds, the optimism over Q3 earnings and the upcoming Union Budget is keeping the spirits of the markets high and is helping it in scaling new heights. Since January 1, 2018, the Foreign institutional investors have pumped in Rs 2,431 crore into the market. This is a welcome change for the market as they were net sellers for the last five months.
The global cues are also positive. A strong US jobs data last week revived the hopes of a firm economic recovery leading to Dow Jones Industrial Average scale a 25,000 mark. Similarly, in Germany, the unemployment rate has gone down to 5.5 percent in December, signalling an economic upswing. Both Nikkei and HangSeng touched 26-year and ten-year high respectively last week.
All in all, everything looks favourable for the bulls to continue their march.