What sent the Nifty up 140 points to a new record high? D-cent bulls on the rampage again

 What sent the Nifty up 140 points to a new record high? D-cent bulls on the rampage again

What sent the Nifty up 140 points to a new record high? D-cent bulls on the rampage again

Investor confidence is reportedly rising due to a robust global system, declining rates, the strengthening dollar, and the absence of significant local triggers.

The mid- and smallcap categories' values have reached "bubble territory," according to analysts.

Benchmark Sensex and Nifty reached all-time highs of 71,913 and 21,593 on December 20 amid favorable global signals and no apparent danger indications, indicating that the bullish climb in domestic markets was continuing.

Nonetheless, given that investors are losing money, market watchers are concerned about premium prices.

The Nifty might reach 22,000 points this year, but it would be difficult to sustain that level, according to Heman Kapadia, senior vice president of institutional equities at KR Choksi Shares & Securities, who spoke with Moneycontrol.

He thinks the correction would help the market get healthier in the short term.

Because of the overbought circumstances in the market, Anand James, chief market strategist at Geojit Financial Services, continued to be wary of "imminent volatility". "The Nifty's uptrend might continue to 21,850 or 22,500, but the day's low points might be around 21,440 levels," he said.

The NSE Nifty 50 increased 140 points, or 0.6%, to an all-time high of 21,593 in the first hour of morning trading, while the Sensex gained 476 points, or 0.6%, to a record high of 71,913.

A weak currency, declining rates, and a robust global order have all increased domestic investors' confidence in the run-up to the new year. All of the main US market averages were trading higher over the course of the night, with the tech-heavy Nasdaq Composite and the Dow Jones reaching new all-time highs.

Similar patterns were seen in the Asia-Pacific markets, which gained deals on Wednesday and followed Wall Street's advances.

Locally, as of 10:10 am, the Nifty Midcap 100 and Nifty Smallcap 100 had both increased by 0.6%, outperforming the benchmark indexes.

However, economists caution that these categories' values are still exorbitant and have reached "bubble territory." "The smallcap and midcap groups have very high valuations. The chief investment strategist at Geojit Financial Services, Vijayakumar, said that it is dangerous to pursue midcaps and smallcaps at current levels.

He said that in this optimistic period, investors should prioritize safety and that it is present in the largecap sector.

Every industry participated in the demonstration on Wednesday. With increases of up to 1%, the best performing Nifty stocks were Nifty IT, Nifty FMCG, Nifty Media, and Nifty Consumer Durables.

Despite Accenture's muted second-quarter sales prediction, IT counters saw a rush of early transactions. Analysts think that instead of being a basic game, this is a macro game.

"The US rate reduction scenario is being considered by the market. The US economy will strengthen as the US reduces multiple rates, which would increase the IT budget, according to Nishit Master, portfolio manager at Axis Securities.

But if rates are not lowered soon, he believes that this is a transitory phenomena and does not anticipate that the bullishness will continue in the medium run.