For the last one and a half years, the Indian stock market is seeing a new boom every day. This boom created a new history on Friday when the Sensex crossed the 60,000 mark. At the same time, the Nifty of the National Stock Exchange has also reached around the 18,000 mark. After all, what is the reason for this boom in the stock markets and what strategy should investors make about it. Know in this special report given by us…
The main reason for the rise in the stock market
The decision of America’s central bank ‘Federal Reserve’ affects the markets all over the world. Federal Bank has not made any recent changes in its policy interest rates, due to which there is a good environment in India and other stock markets of the world. At the same time, it has not given any indication of increasing the rates in the coming time, due to which the confidence of the investors remains strong. Federal Bank does not have a fixed roadmap for setting policy interest rates, due to which there is sufficient cash flow in the market. If seen, since January 2021 till now, the Dow Jones has seen a rise of 9.89 percent and the Nasdaq 10.09 percent. Whereas the Indian market’s major index Nifty has gained 22.16 percent and the Sensex 20.68 percent since January 2021.
country recovering from corona pandemic
Since the year 2020 till now, the country has seen two waves of corona epidemic, and now India has recovered from it. The Indian economy is showing signs of strength again. India’s GDP growth rate was recorded at 20.1 percent in the first quarter of the financial year 2021-22. This gave a positive trend to the market. At the same time, the Indian market is also excited by the positive news related to the Evergrand crisis in China. Chinese real estate company Evergrand Developer has announced that it will pay interest on time. At the same time, to overcome the lack of liquidity in the economy, the People’s Bank of China will invest $ 18.8 billion i.e. 1.41 lakh crore rupees in the Chinese banking system.
At the same time, the Government of India is also helping many sectors of the economy. The government has announced many major reforms in the telecom sector. These are structural reforms. With this, an expectation among investors is also seen coming back.
For the last two years, the IPO market has also remained very bright. Many companies are bringing their IPO in the market, especially recently many startup companies have brought their IPO. Due to this, there is a lot of enthusiasm among the investors especially the new investors and they are earning money by investing.
On the other hand, there is also a boom in Foreign Direct Investment (FDI). Between April and July, foreign investment increased by $ 27.7 billion. Due to this, there is a positive trend among investors regarding the market and the economy. Also, the results of Indian companies are expected to be good in the July-September quarter as well.
In the midst of a boom, this should be the strategy of investors
Seeing the continuous boom in the market, we started taking questions related to the stock market from investors in our partner channel Business Today TV. Started helping them to decide the right strategy in such an environment. Through this we have seen that most of the questions are coming related to making profits in a booming market. Along with this, we got some questions that – There is enough cash available but it is not known in which stocks or sectors in the market one should invest money.
On the other hand, long-term investors are afraid whether they should exit the market now after booking profits or should remain present for some more time? From this it can be inferred that an enthusiasm has come back from the people and there is a positive trend regarding the stock market.