India's stock market breaches 50,000-mark for the first time ever
Mumbai/IBNS: In the backdrop of the slow economy and Covid-19 crisis, the Indian stock market on Thursday breached the 50,000-mark for the first time ever giving a cheer to the Dalal Street in Mumbai.
In the opening hour, the BSE Sensex surged 300 points to cross the psychological mark.
Bajaj Auto, Bajaj Finance, Bajaj Finserv, HCL Tech, Reliance Industries and Asian Paints have remained the top gainers in the BSE pack.
The NIFTY is above 14,000 with the surge in 84 points on Thursday.
However, the analysts are flagging concerns about the rich valuation of the market.
"The liquidity expansion by the central bank and the ample FII driven liquidity, a V-shaped recovery of growth aided by the discovery of the vaccine, and most recently, the change of guard in the US have been some of the factors propelling markets higher and higher," Joseph Thomas, Head Of Research, Emkay Wealth Management said as quoted by Money Control.
He added, "As the Sensex crosses the 50k, the valuations do look stretched. The valuations are a function of earnings and earnings not coming through remains the key risk at the current juncture."
"No doubt the market is in a bubble zone. A lot of stocks are in the bubble zone, including large-caps, mid and small-caps and penny stocks. However, there are still pockets of opportunities," said G Chokkalingam, Founder and MD, Equinomics Research & Advisory as reported by Money Control.