The stock markets have been seeing an outstanding run form the starting of this week, from three days constantly it has been closing on record highs. On Thursday, the surge continued as the Sensex broke the 32,000 mark for the first time. The 30-share BSE Sensex gained 232.56 points to close at 32,037.38 and the broader 50-share NSE Nifty gained gaining 75.60 and closed at 9,891.70, points.
Let us find out about the markets’ bull run and what we can expect in the days to come.
How much have the markets climbed?
The markets are seeing a serious spike. The 30-share BSE Sensex and the 50-share NSE Nifty had gained by 2.86 per cent and 3.10 per cent respectively in July, when the markets closed on Wednesday. Also, till Wednesday, Sensex was up 19.45% this year and proved to be the best performed in Asia after the Hong Kong’s Hang Seng index which has increased by 18.4%.
Liquidity in the market
Market experts say that there is a lot of liquidity in the market which is the key reason behind this hike. According to NSE data, FIIs (Foreign Institutional Investors) have invested $8.24 billion and domestic investors have pumped in Rs 24,596.86 crore in Indian markets, in 2017 so far.
This week’s trading sentiments were also influenced by a report published on Friday by the US Labor Department. The report showed that non-farm payrolls increased by 2,22,000 in the month of June. This may be an important reason for the increased interest shown by foreign investors.
Also, the policies introduced by the Narendra Modi- government have provided a sense of positivity in the markets.
What investors should do?
According to experts SIP on monthly basis is the best bet, or you should go for profit due to all three positives- Rupee, ease in rates and liquidity. Mutual funds are also performing at all-time best levels. Besides, you can consider investing in banking sectors and metals to make the complete use of the happy hours.
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