Sensex got investors silver, such a boom after April, will all the records break?

Stock market

There is tremendous positivity in the Indian stock market. The Sensex is closing on the green mark with 6 consecutive trading sessions and during this time it has jumped about 2,000 points. This is the biggest rise in 6 days after April.

On August 21 (Thursday), the Sensex rose around 400 points. Now it is just 5% below its all-time high 85,978 (recorded on 27 September 2023). The Nifty is also trading below 5% from the high of 26,277.

Why is the stock market climbing?

Expectations of GST improvement PM Modi announced the GST reforms of the next generation from the Red Fort on August 15, which will make tax slabs easier, everyday things will be cheaper and consumption will increase.

Improvement in credit rating On August 14, S&P Global increased India’s rating from BBB-to BBB and kept the outlook stable. This increased the chances of getting new foreign funds.

Geopolitical relief The expectations of the Russian-Ukraine war have increased, the Presidents of both countries are going to talk directly.

US fed rate deduction expected Interest rates may decrease in September, which will give support to the market.

Expectations of improvement in earnings The possibility of better results of companies is also a reason.

But there are also dangers

American tariff From August 27, America is going to impose 50% tax on India’s $ 50 billion goods. If this happens, it will have a big impact on Indian companies and markets.

Foreign investor selling In July, he sold shares worth about Rs 47,600 crore and in August so far, 25,000 crores have been withdrawn.

Market over valid Out of BSE 500 companies, 215 shares are running above 50 P/E. Small shares are especially more expensive and risky.

What can happen next?

In a survey of Reuters, 20 experts have estimated that the Nifty can go to about 25,834 by the end of this year. By mid -2026, it can reach 26,500 and by the end of 2026 to about 27,950. Experts believe that the new record will be a bit hurry. According to Pankaj Pandey of ICICI Securities, the market is currently in a fan of consolidation. New high may look till Diwali, but the export sector will still remain unstable because there is no trade deal with America.

Disclaimer: This article is only for information and should not be considered as an investment advice in any way. TV9 India suggests its readers and spectators to consult their financial advisors before taking any decision related to money.

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