Markets rebound post Covid ’19 peak: FPIs’ investment confidence gets a boost!
There is good news for the Investors particularly the Bulls- your waiting period is over, it seems. Yes, after 6 months, sensex back at 39330. The redeeming factor is the FPIs are back with their aggressive buying with Rs 45000 cr in August 2020- the highest in 10 years!
Boosted by strong buying in automobile, Banking and Financial services and IT stocks, the sensex today reached a new high in the recent past, in the midst of the trade and touched 39333 points. The sensex touched this high on 27th February 2020- pre covid period. On the basis of investor wealth BSE’s market capitalization is about Rs 5.6 L Cr, more than what it was in Feb 2020.
FPIs have so far infused fresh investments to the tune of Rs 45000 cr into the markets so far in Aug so far. The strong monthly flows positive with the total currently at Rs 35000 cr. in this week so far over Rs.2000 cr.
The FM has done some magic with her statement that the two wheelers are not under luxury items and is not a sin and hence likely to give some relief in GST from the high 28 % -may be to be brought down to 18 %-gave a thumbs up response for the auto sector which has been reeling under pressure for long.
On the international front prospects of an economic stimulus in the Eurozone and some positive talks on US-China trade deals also gave a boost to the investor sentiment and hence the buying spree emerged.
The market pundits opine that that the buying momentum is likely to continue for sometime in the near term with more stock-specific pick up by the investors. The vaccine also gives room for a positive perception amongst the investors locally and globally.
Of course intermittent technical correction and profit-booking may also happen which the investors are aware by now and avail the opportunity to buy at low levels when the markets come down as buy-on decline strategy always helps..
Investors are advised to track the market news and its influence on the markets and take appropriate decisions.
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