Sensex—December surge

SARASIJ MAJUMDER

SENSEX, and NIFTY crossed new milestones.

Some members  of my INVESMENT SAVVY group asking many questions to me, which can be summed up as follows:-

A. Shall we SELL?

B. Shall we BUY, if yes, which one?

C. Shall we HOLD?

I will answer all the three above in this BLOG—but let us discuss, and understand the MARKET.

STATUS as on 11/12/2023:-

  1. Equity benchmark Sensex breached a new HIGH of 70,000 points, closing 100+ points higher on Monday. Nifty settled just shy of the 21,000 mark. Both are driven by gains in Finance, Banking, IT and Metal sectors.
  2. Total 18 Sensex shares closed in the green, 11 declined, and one settled unchanged.

      What's driving the Market up??

  • Despite the Hindenburg saga, the Adani Group tops the list of wealth creators among conglomerates — with a return of over 100% to its shareholders in the last 2+ years while Sensex surged 39+%.
  • The Bharti Group, with its two listed companies, is the second-largest wealth creator followed by Bajaj. Tata is next with Aditya Birla closing the gap.
  • Mukesh Ambani's Reliance Industries Group, however, underperformed.

The economic factors:-

                               I.            Foreign Portfolio Investors: FPIs have invested Rs 26,505 crore into domestic equities in the first six trading sessions of December.

                            II.            Economy: Scripting a swift recovery from the Covid pandemic, the economy is poised to grow at 7% this fiscal year ending in March — on the back of a first-half growth of 7.7%.

                         III.            IPO boost: The advent of new-age IPOs — from Zomato in 2021 to Mama Earth last month — has contributed to the stellar rallies in DALAL Street. Barring Paytm, whose valuation has dropped to $5bn from the peak of $16bn, the market capitalisations of other new-age firms are either POSITIVE or at par.

 

Political Factor:-

Elections: The victory of the pro-market BJP in the Hindi heartland states has contributed to the bullish sentiments in the share markets.

What's different this time?

  1. Unlike earlier stock market rallies, the rupee and stock indices have moved in opposite directions. This is because of the smaller roles played by FIIs.
  2. However, some experts are forecasting that continuous depreciation of the rupee against the dollar may become history from next year.

What you should watch out

1.0 Investors shall  closely watch the upcoming US Federal Open Market Committee (FOMC) meeting today for clues about potential future rate cuts

2.0 The US government will report on consumer inflation today while the Federal Reserve will announce its next move on interest rates tomorrow.

WHAT I AM DOING:--

Answer to “A”--- I am clearing the LAGGARDS, whatever a few I have in my portfolio.

Answer to “B”----I am not buying any stock now, in this MARKET. All good shares are much above their Intrinsic Value.

Answer to “C”--- Yes, I am HOLDING .

Most Important:- Market is not overvalued. Don't Panic.

 ----------------------------------------------------------------------------------------------------------------------------

SOURCE:-- TOI, FT, ET, MONEY, MINT and NDTV

IMAGE:-- TOI

Disclaimer:- The material used from sources, and furnished in the BLOG are for information only. There is no recommendation on SALE, HOLDING. or PURCHASE of SHARES.

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