Sensex ends above 44,000 for first time even as investors turn cautious on virus rise1 min read . Updated: 18 Nov 2020, 10:44 PM IST
- Markets in other Asian regions were mixed as despite vaccine arrival expectations, investors remained cautious on continuous rise in covid-19 cases
- As economies around the world are recovering from the covid blows, global fund managers and brokerage firms are increasingly favouring India
Indian markets inched up to new highs amid a volatile session on Wednesday. The 30-share Sensex ended trading above the 44,000 mark for the first time, closing at 44,180.05, up 227.34 points or 0.52%, though rising covid-19 cases have impacted investor sentiments. The Nifty ended at 12,938.25, up 64.05 points or 0.50%.
Markets in other Asian regions were mixed as investors remained cautious because of the continuous rise in covid-19 cases, despite expectations about vaccine arrival. On Tuesday, US Federal Reserve chairman Jerome Powell also warned that the surge in cases is a concern for an economic recovery that has “a long way to go".
“Domestic equities continued to maintain its northward move, mainly led by a rebound in financials and automobiles. Strong buying continued in mid-cap and small-cap stocks, which was very much on expected lines. A healthy improvement in the earnings outlook of financials and visibility over asset quality continued to support financial stocks. We believe that Nifty is poised to touch the psychological 13,000 mark shortly as underlying strength remains intact," said Arjun Yash Mahajan, head, institutional business, Reliance Securities.
However, the quick rise of the Indian markets may be lacking fundamental support as valuations seem to be overheated and may concern investors. The Sensex and Nifty are trading at 21.95 times and 21.48 times, respectively on one-year forward price-to-earnings (PE) based on Bloomberg estimates.