Sensex Rallies Over 4,000 Points Since December to Climb 48K; 14 Stocks Rose 40-100%
The S&P BSE Sensex rallied more than 4,000 points since December and hit a fresh record high above 48,000 on Monday.The primary factor leading to this rise is abundant liquidity. The loose monetary policy adopted by central bankers across the globe, the US stimulus package, as well as news about a possible vaccine globally, supported the bullish sentiment.
There are more than 200 stocks that rallied more than 10 percent since December, and 14 such stocks rose 40-100%.Approval of vaccine for COVID-19 supported the bullish sentiment, but now the next big event that will drive markets in 2021 is the Budget 2021. Although technical correction is something that is on cards we could see fresh highs ahead of Budget 2021.
2021 is likely to outperform, similar to 2020, and our core themes - digital, telecom, pharma, rural, staples, and consumer discretionary, continue to remain relevant in 2021. Sectorally, investors should focus on stocks that are likely to benefit from a revival in the economy. With the rollout of the new vaccine in parts of the world including India, chances of a swift economic revival is a possibility.
Indian corporate earnings are already showing strong signs of growth, and it seems that Covid has only accelerated the formalization of the Indian economy, suggest experts. With interest rates staying lower will only result in CAPEX revival.
"We expect India to have an economic revival in 2021. That should be supportive of Banks and NBFCs, infrastructure and materials (cement, steel, etc),” Anil Sarin, CIO – Centrum PMS told Moneycontrol.