Sensex gains 17% in Samvat 2073

Despite experiencing high bout of volatility on account of both domestic as well as global factors, the Indian equity markets signed-off Samvat 2073 on a impressive note with the 50-share NSE Nifty and 30share BSE Sensex posting a gain of about 18 per cent and 17 per cent respectively during the period.

Samvat (year in Sanskrit) refers to Vikram era, which begins with Diwali. Traders involved in buying and selling stocks traditionally close their yearly books of accounts on the day before Diwali.

While the Nifty and Sensex have hit an alltime high in recent days, experts feel the a recovery in both domestic economic growth and corporate earnings growth would play a major role in taking the markets to newer high in the coming months.

“What we saw in the last one year was purely a liquidity-driven rally. With the domestic markets hovering around their all time high, any further disappointment in corporate earnings growth and economic growth may lead to severe disappointment, which could lead to a reversal in liquidity flows,” said Ambareesh Baliga, senior research analyst.

According to him, the issues related with the implementation of the GST is likely to play out for at least another few quarters. “The government is likely to resort to populist measures ahead of the 2019 Lok Sabha elections and slew of state assembly polls lined up next year. Additionally, the geopolitical tension in the Korean Peninsula would be another major cause of worry going forward,” he added.

On Wednesday, the markets snapped their fourday winning streak. The Sensex closed the day at 32,584.35, down 24.81 points and the Nifty closed the sessions at 10,210.85, down 23.60 points.