Sensex hits 50,000: Here’s what analysts are saying

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The benchmark equity index BSE Sensex scaled another psychological level of 50,000-mark for the first time on Thursday. Heavy buying in index heavyweights including Reliance Industries, Bajaj Finance and ICICI Bank lifted the sensex past 50,000.Overall, the index has gained around 95% from the lows of March 24, 2020, when the market tanked due to the nationwide lockdown.

Market experts say, hopes of fresh stimulus in the US and other economies, sustained inflows by foreign institutional investors (FII) and liquidity measures taken by the central banks aided the spectacular bull run during the past 10 months.

So, is it the right time to invest in the Indian equity market? Money9 collated views from market analysts to understand how the market will move from here onwards.

Vijay Chandok, MD and CEO, ICICI Securities

Sensex crossing the 50,000 is a telling sign of economy and markets shifting orbits on broad-based recovery and better days ahead. The combination of strong capital inflows, low-interest rates and leaner balance sheet of India corporates along with government measures for growth is expected to lift the economic growth ahead. The same is likely to resonate in capital markets, thereby keeping the markets buoyant in the long term. We continue to advise investors to stay invested, to capitalise on the decadal economic growth ahead, for medium term wealth generation.

Motilal Oswal, MD & CEO, Motilal Oswal Financial Services

Indian markets have been witnessing strong momentum over the past few months on the hopes of a faster economic recovery after the pandemic lockdown. Also, positive global cues, sustained FII inflows, strong corporate earnings kept the sentiments high. The buzz around the upcoming budget has also added strength to the markets. The budget could potentially lay the foundation for a long term economic growth. Overall, the market will continue its upward journey.

Nilesh Shah, Group President & MD, Kotak Mahindra Asset Management Company

Sensex touching 50,000 in 2021 is like Indian cricket team winning test series in Australia against all odds. While economic data is about the past which is improving month on month, Sensex is reflecting the positivity about the future.

Rahul Gupta, Head of Research-Currency, Emkay Global Financial Services

The hopes of further stimulus under the Biden’s administration is keeping all emerging market currencies including rupee on a positive note.

Joseph Thomas, Head Of Research, Emkay Wealth Management

As the Sensex crosses the 50,000, the valuations do look stretched. The valuations are a function of earnings and earnings not coming through remains the key risk at the current juncture.

Tarun Birani, Founder and CEO, TBNG Capital Advisor

Investors who may have achieved their targets may go ahead and book their profits. At this specific time, investors should pay attention to their portfolios which may need rebalancing to ensure their portfolios aren’t overweight. Investors must pay attention to the right asset allocation which is key to a balanced portfolio. In the broader markets, banking, midcap, and smallcap indices that are trading at relatively cheaper valuations and ready to be cherry-picked.