Vaccine High: Sensex to summit 50k mark, budget to give added boost (IANS Special)

By Rohit Vaid Mumbai, Jan 5 : India’s bellwether index — Sensex — is expected to cross the 50,000 points-mark, even before the first FY22 budgetary announcements are made, as investors, both foreign and domestic, have bet big on the upcoming vaccination drive and quarterly earning season.
Besides, seasonal factors such as active FII inflows, abundant global and domestic liquidity as well as rising consumption trend, have investors glued to their stock holdings.
Even volatility induced via profit booking is not hampering the market’s up moves as every dip is seen as a buy in opportunity into the never ending bull run.
“We are barely 4 per cent away from the 50,000 mark. If the inflows continue and global markets continue to be supportive, we can reach that number very soon,” said Deepak Jasani, Head of Retail Research at HDFC Securities.
“As long as interest rates globally remain low, equity inflows could continue as the outlook on economic improvement remains bright.” In calendar year 2020, India received $22.5 billion or Rs 1.7 lakh crore worth of FII money for equities.