Sensex crosses 60,000

The BSE Sensex closed 163.11 points or 0.27% higher at 60,048.47. Nifty closed 30.25 points or 0.17% higher at 17,853.20.

Stocks in other Asia-Pacific regions were mixed on Friday as the Nikkei in Japan jumped 2.06%, while Hong Kong’s Hang Seng index fell 1.45%.

According to Piyush Garg, CIO – ICICI Securities Ltd. Indian markets have been performing well in the last few quarters due to strong liquidity, upward earnings cycle, economic revival due to fading Covid-19 impact.

However, market participants should be wary of rising inflation and draining liquidity from the system, he cautioned. Garg said rising inflation risks and withdrawal of ultra-easy monetary policy by global central banks (primarily the Federal Reserve) could lead to a sharp rise in bond yields, allowing riskier assets to correct faster.

Indian markets have been rising for most of September despite periodic panic over China’s money gains, Evergrande loan defaults, a global crisis and the US Federal Reserve’s decision to cut rates. While most analysts believe that the bullish trend in the Indian markets will continue, valuation concerns have increased significantly.

“Economic growth is just getting started, with credit growth starting to show some stability. So as far as the longer duration is concerned, there is a bigger runway ahead. In the short term, the Frontline Index is looking a bit warm on the momentum readings. Also, when you historically score the markets on valuation parameters, they are a bit stretched,” said Vineet Sambre, head-equity, DSP Investment Managers. The market is now trading at around 20 times FY13 earnings. are.

Meanwhile, India’s Volatility Index or India VIX, also known as the gauge of fear, closed at 16.92%, up 1.92% on Friday. The rise in VIX signals a growing concern among investors.

However, Jefferies said the Indian stock market remains exceptionally resilient. It said the structural bull story in India continues with mounting evidence that a new residential property cycle has begun after a seven-year slowdown, despite shocks from the delta wave.

Jefferies said that apart from the risk of another Covid wave, the major domestic risk to the stock market is a change in the policy of the Reserve Bank of India. The easing currency stance, led by the Reserve Bank of India’s monetary policy, has been a major driver of the stock market’s rally. “But India is also at a major turning point in earnings with corporate profits to GDP ratio rising from a low of 1.2% in FY15 to an estimated 2.1 in FY15,” said a note dated September 23. % Done.” .