By Administrator_ India
The Sensex on Monday crossed the 52,000-mark for the first time amid huge investments by foreign portfolio investors (FPIs) in global equity markets.
The 30-share index gained 609 points, or 1.2 percent, to end the session at 52,154. The Nifty50 rose 151 points, or 1 percent, to end the session at 15,314. So far this month, both benchmark gauges have rallied close to 13 percent, supported by sustained FPI flows.
Overseas investors bought shares worth Rs 1,234 crore on Monday, taking their month-to-date buying tally past the Rs 20,000 crore. The unprecedented foreign inflows into the equity markets are a global phenomenon with most markets recording new lifetime highs.
According to reports, investors pumped a record $58 billion into equities last week. A BofA note said about 63 percent of assets under management at its private bank, which serves wealthier clients, were now allocated to stocks. And allocation to equities is at an all-time high.
Analysts said historically low-interest rates and hopes of a huge recovery in global economic growth had whipped the appetite for riskier assets.
The rollout of vaccines has kindled hopes of an economic recovery. Investor bullishness has also been driven by hopes that US President Joe Biden’s $1.9-trillion stimulus proposal will help the country recover from the coronavirus-triggered economic crisis.
The rally in the bond markets has led to yields falling to historic lows and pushed investors to shift money to risky assets. Analysts said the reflation trade is set to continue amid vaccine rollout and spending by governments globally.