However, the market is seeing a bullish trend since February. During the period, the BSE benchmark index Sensex gained 1.04 per cent against a strong gain of 1.58 per cent in March. The index rose by 1.12 percent in April.
Master Capital Services Ltd. Senior Vice President Arvinder Singh Nanda said, “Overall, the bullish trend in the market is expected to continue. One of the main reasons for this is the strong participation of both individual investors as well as local institutional investors.
“If the financial results of the rest of the companies remain positive in the coming days, the market is expected to have a bullish sentiment,” he said. “If the tension in West Asia eases, the financial results of the companies will be positive,” said Nanda. If results remain good and China’s economy continues to show strength, market sentiment is likely to remain strong.
He said, “The market has reached record highs for various reasons. Firstly, the positive market sentiment coupled with the strength of the Indian economy has boosted investor confidence.
The BSE Sensex touched its all-time high of 75,124.28 points during trading on April 9 this year. The index crossed the historic 75,000 level for the first time on the same day. The Sensex closed above 75,000 points for the first time on April 10. For the first time on April 8, the market capitalization of BSE listed companies crossed Rs. 400 lakh crore was crossed.
Currently, the market capitalization of companies listed on BSE is Rs 4,06,55,851.94 crore ($4,900 billion). Swastik Investsmart Ltd. Sunil Nyati, Managing Director said, “Despite concerns over high valuations since the beginning of this year, mid and small cap stocks have continued to rise. This is likely due to adequate domestic liquidity and a positive outlook for the Indian economy.
He said, “This outperformance of smaller companies reflects the trend observed in earlier major markets globally. This shows that the Indian market is also probably at a similar stage of development.
Asked whether the sell-and-go strategy will be implemented in May this year, Suman Banerjee, CIO (Chief Investment Officer) at hedge fund Hedonova, said, “Looking at the historical data, it is clear that the traditional ‘strategy’ of sell-and-go in May. May not be true given the current market conditions and especially the general elections.
As per the strategy, the investor sells his shares in May and avoids investing during May to October which is generally considered volatile. Then in November the equity returns to the stock market. Nyati said that now the adage ‘sell in May and stay away from the market’ has become old. Statistics do not confirm this.
“We believe the market will remain bullish despite the delay in interest rates in the US and rising bond yields,” he said. Our strong domestic economy is balancing the situation with positive results in many sectors. Apart from this, the possibility of the current government coming back to power in the current election is also keeping the market bullish.