Sensex might hit 58,500-level by March 2022 as the Indian equity market has been showing an “unbreakable nature” amid the havoc created by the second wave of the COVID-19 virus, according to global wealth management major Julius Baer Group.
Julius Baer’s MD and Head (research) Mark Matthews emphasised the strong nature of the Indian market and said that company earnings would ultimately drive the share price at the market.
Domestic Indian index, Nifty and Sensex have been touching new highs even after the second wave of covid, showing strong trends in the share market. It may have come as a surprise to many since the second wave has impacted economic activities severely around the entire country.
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He also said that he was shocked by the horrifying scenarios of the second wave in India as well as the way the market reacted to it.
"Clearly, we were shocked and horrified by the second wave (of the pandemic). But, I was also shocked by the way the market barely reacted to it at all... So, that mere fact in itself speaks to the almost unbreakable nature of the Indian market.” Matthews was quoted as saying by news agency PTI.
"I mean if it wasn't gonna go down on that kind of a disaster, I don't know what can take it down. So, I think it is a very strong market," he added.
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Currently, the 30-share BSE Sensex is trading above the 52,500-level. It touched a lifetime high of 52,641.53 on June 11 in intra-day trade.
Following a year of untimely scrutiny of the Covid pandemic which has affected virtually every aspect of an individual’s life, the domestic equity market has stayed relatively optimistic. In fact, a bullish trend this year has resulted in a 10 per cent growth in the country’s benchmark index, which translated into a 4,800.2 points gain.
In another milestone, Sensex crossed the 50,000 points mark in intra-day trade on January 21, 2021. It closed above 50,000 for the first time on February 3 and crossed the 51,000-mark in intra-day trade on February 5.
On February 15, it crossed the 52,000 mark for the first time. It currently sits at more than 52,600 points. Further, the market capitalisation of all the BSE-listed companies touched USD 3 trillion on May 24.
