01 December, 2020

Jaswant's Ladder

The 6000-mark looks a lot more reliable. And markets look good for some more.

Abhijit Bhatlekar
Jaswant's Ladder
History was made with the onset of the new year. At about 12:31 pm, just four minutes before what is known as the vijay mahurat by the stockbroking community, the sensex shot beyond the magic 6000 mark to close at 6027. A cent per cent jump in 164 days.

The sensex did come tantalisingly close to the 6K mark in February 2000 but the present one is refreshingly different. This time, almost all key components of the 30-stock bellwether index contributed to the rise, making it much more broad-based and hence dependable, reliable and sustainable. Against the mainly tech-led boom (and bust) of 2000, today we see the return of the old economy, almost all of it.

But market players anticipate a "correction to fundamentals". "The movement of the economy and the restructuring etc of companies that brought in this year’s earnings have been factored into the share prices now. Further movement upward will depend on further performance," explains an analyst.

Global economy factors may change too. Like a slump in China’s demand for steel and other commodities or a change in...



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