The domestic market has recorded the highest monthly progress since April. In November, the benchmark Sensex Index and Nifty 50 Index each rose 11.4%, supported by the highest foreign influx ever.
US-specific election ratings and progress at the forefront of vaccines have helped foreign portfolio investors (FPIs) risk appetite.
Their average daily purchase was over $ 400 million, or Rs 3,000.
The smaller and mid-cap indices in the broader market each outperformed with a rise of over 13%. Friday was the last trading day of the month as the market was closed due to Monday’s holidays.
The latest rise is on a high basis, as the market has already surged 50% from the Covid-19 lows on March 23 and October. The November rally helped Sensex and Nifty surpass January’s record highs. Nifty also exceeded the physiological 13,000 mark during the month.
During the month, all Nifty components increased, four of which surged by more than 40%. Metals and banks have emerged as the best performing sectors.
Joe Biden’s victory in the US presidential election and the Democratic and Republican Party’s retention of control of the US House of Representatives and Senate were considered the best possible results for the stock market.
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Prior to the election, investors were betting on a “blue wave,” a Democratic party sweeping both the White House and Congress.
However, the split parliament was welcomed by investors, and Republicans in the House of Councilors felt they would thwart increased taxes and medical costs and tighter fiscal regulation. Byden is also less aggressive towards China, where investors want to intensify their sentiment towards export-dependent economies and businesses in Asia, and more foreign flows into emerging markets. Seemed to be taking an approach. Biden’s planned appointment of former Fed chair Janet Yellen as Treasury Secretary is considered dovish and optimistic that the Federal Reserve Board will continue its loose financial stance. showed that.
Within days of the US election results, the market was attacked again. This time, in the form of better results than expected from the covid-19 vaccine trail. The announcement by AstraZeneca and Pfizer on its effectiveness proved to be a big emotional boost for the market. Vaccine advances have led to optimism that normality will return early next year. This helps to catch up with shares from many sectors hit by the Covid-19 pandemic play. Many stocks in the hotels, aviation and entertainment sectors recorded a significant rise in November.
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“The general expectation is that the breakthrough in vaccines will bring things back to normal, open borders much sooner and make Asia a global growth engine. Once Biden is elected, it will be international. There is optimism about improving ties. He hoped to avoid a confrontational approach to China and world trade. India gains a fair share as money flows into the world and Asian markets. Probably. “
India got more than a fair share of FPI flow in November. It was the recipient of the highest foreign capital flow in emerging markets after China. However, the sharp rise in November has pushed valuations into expensive territories, and experts feel they could dig into future returns.
“The market is booming from lows and valuations are not cheap. Second, the economy has improved sharply from lows. Whether the economy is now stagnant and starting to weaken is seen as we receive some mixed signals. Need. I now know that vaccines are coming more or less. Still, the question is whether there is a second wave and a new blockade before we all get a shot of the vaccine. “
The market has recorded the highest monthly profits since April. Sensex, Nifty Gain 11.4%
Source link The market has recorded the highest monthly profits since April. Sensex, Nifty Gain 11.4%