India’s benchmark Sensex touched 60,000 mark for the first time

MUMBAI: India’s benchmark Sensex jumped 60,000 points for the first time on Friday, fueled by strong liquidity inflows and investor optimism of a sustained revival in the economy from the Covid-induced turmoil.

The BSE Sensex rose 163.11 points, or 0.27%, to 60,048.47. National Stock Exchange’s Nifty closed 0.17% higher at 17,853.20.

While most analysts believe that the bullish trend in the Indian markets will continue, valuation concerns have increased significantly.

While most analysts believe that the bullish trend in the Indian markets will continue, valuation concerns have increased significantly.

ICICI Securities Ltd Chief Investment Officer Piyush Garg said Indian stocks have performed well in the last few quarters on the back of strong liquidity, upward earnings cycle and economic revival due to a fading pandemic.

However, he cautioned that investors should be wary of rising inflation and subsequent pressure on liquidity. Garg said rising inflation risks and withdrawal of ultra-easy monetary policy by global central banks could lead to a sharp rise in bond yields and a recovery in riskier assets.

Despite periodic panic over China’s Evergrande debt default and the global crisis and the Fed’s decision to cut rates, Indian equity markets are hitting new highs in September. While most analysts are confident that the uptrend will continue, concerns remain about higher valuations.

“Economic growth is just getting started, and credit growth is seeing some stagnation. Therefore, there is a bigger runway ahead for the long haul. In the short term, the Frontline Index looks slightly warm on the momentum readings. Also, when you score the markets overall on historical valuation parameters, they are a bit stretched,” says Vineet Sambre, head-equity, DSP Investment Managers. The market trades at around 20 times FY13 earnings. are.

Meanwhile, India’s Volatility Index or India VIX rose 1.92% to 16.92 during the day. A rise in VIX indicates greater concern among market participants.

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