 "Market carries optimism into Samvat 2071")
During the 75-minute trading, the benchmark Sensex rose 63.2 points, or 0.2 per cent over its previous close, to end at 26,851.1. The 50-share National Stock Exchange Nifty added 15.8 points, or 0.2 per cent, to close above the psychological 8,000 mark, at 8,011.7.
Those present at BSE’s historic convention hall to place their token trades on Thursday were seen cheering and greeting each other — a clear contrast to last year’s Muhurat trading day.
The Sensex, which ended with gains for a fifth straight trading session, is now less than 500 points shy of its all-time closing high of 27,319.9, touched on September 8 this year.
Despite the benchmark stock indices hovering close to their record highs, traders were hardly nervous. A lot of token bets were placed on companies in the small- and mid-cap segments, which outpaced the benchmark indices during Samvat 2070 by a huge margin.
On Thursday, the BSE Mid-cap index gained 93.9 points, or 0.98 per cent, to close at 9,669.8. The BSE Small-cap soared 1.5 per cent to end at 10,668.0.
Veteran investor Mahendra Mehta said he was much more sanguine about the market prospects. “My investments appreciated more than 50 per cent during the past year. I am confident the market will give me returns of another 25 per cent next year. I feel much more comfortable this year, especially with a new government in place and its policies,” said Mehta, in his mid-70s.
Analysts said the measures taken by the government on the economic reforms front in the past few days had inspired investors. And, if the Centre took more initiatives in the coming weeks, it would set the tone for another year of good returns, they said.
Axis Capital Managing Director & Chief Executive Nilesh Shah said the key to riding the market, going forward, would be having a stock-specific, and not sector-specific, approach. “A lot of returns will come by picking good stocks at the right price,” he said.
IIFL Chairman Nirmal Jain said he expected Samvat 2071 to top the previous year’s 26 per cent returns. “After a lot of time, we are entering into a new year with a lot of optimism and positivity. Things are looking good on the macro front. Crude oil prices are down. The next Budget is expected to be reform-oriented. All these are positives for the market. Returns will be much better in the coming year,” he said.
Analysts believe the key risks to the market would largely be global events, including slowing economic growth in Europe and China, geopolitical tensions and the likely interest rate increase in the US. The markets players do not rule out volatility and bouts of selling by foreign institutional investors once the US Federal Reserve firms up its plan on interest rate increase. Most experts, however, advise investors to look at corrections as buying opportunities.