In less than a span of two months, Sensex is all set to travel from the 22,000 mark to 23,000 level.
On Wednesday, the benchmark index, Sensex, ended at a record high of 22,876.54 points — just 124 points away from another landmark of 23,000. Similarly, fresh buying in the equity markets saw the Nifty inch closer to the 6,900 mark.
Market did slide in the mid-after trades as rupee breached past 61 against dollar — hitting a month’s low. However, the slide was marginal and indices managed to make a comeback towards the end. Finally, amid April expiry, the Sensex closed up 118 points at 22,876, while NSE Nifty closed at 6,841 up by 25 points compared to the previous close.
According to the experts, Sensex is likely to hit a new mark on Friday. Both, National Stock Exchange (NSE) and Bombay Stock Exchange (BSE), have announced a trading holiday on Thursday on account of voting in Mumbai.
In the sixth phase of the Lok Sabha election, polling will be held in 12 states across 117 constituencies. It is expected that if the voter turnout is higher, markets will further rise and Sensex and Nifty may touch a new high on Friday.
The entire stock market rally is riding on hope and post election, if it is fulfilled, Sensex might even cross 24,000 points, believes Ketan Marwadi, managing director of Marwadi Stock Broking Ltd.
“People have money, but they don’t want to commit on investment as they lack confidence. Now, that the confidence is being gained. FIIs are pumping money with a hope that the country will get a good decisive government ruled by the NDA. Now, if the results meet the expectations, we may see Sensex touching 24,000,” he said.
Healthcare, FMCG, metals and select auto stocks were among the major contributors towards Wednesday’s upswing. Even the mid-cap and the small-cap stocks gained marginally.
Bank of Baroda, Kotak Bank, Ambuja Cements, PNB, L&T and Tata Steel were among the top gainers on NSE, whereas Cairn, DLF, IDFC, UltraTech Cement, BPCL and HCL Technologies were among the top losers, informed Amar Ambani, Head of Research, IIFL.
Amid April expiry on Wednesday, the equity market continued to climb but the growth is artificial, said Jagdish Thakkar — a Vadodara-based stock market analyst. “It seems that speculators have decided to pull the indices — Nifty and Sensex — above 7,300 and 24,000 mark before poll results. And if, the BJP succeeds in getting 250 to 270 seats, there are high possibilities of upper circuit (10% jump in a day) which can take the Sensex beyond the 25,000 level,” he said.
According to Thakkar, someone who has very strong risk appetite and confidence over Narendra Modi winning with higher number of seats can invest into stock market. “But, if the BJP gets less than 220 or 200 seats, there are possibilities of lower circuit (10% fall in a day). Hence, we ask investors to stay away from stock market for a while,” he said.