InvestorQ : Were there any global factors that resulted in the Sensex closing the week decisively over 50,000?
Dilmini Mercia made post

Were there any global factors that resulted in the Sensex closing the week decisively over 50,000?

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Dawn Cherian answered.
3 weeks ago
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There were actually 2 factors that pushed the Sensex above 50,000 and the Nifty above 15,100 levels in the week. The week was all about the Fed. Despite highlighting the inflation and heating risk, Fed was emphatic that any rate hike was a long, long time away. Fed action on rates was likely to commence only a year after tapering bond purchases. With no hawkish policy risk, it is not surprising that the Sensex and Nifty celebrated.

The second global factor was that FPI selling was tapering. They are yet to turn buyers but the FPI selling is surely tapering. One reason is the fight against the resurgence of the pandemic. India may be lagging in the vaccine race, but it has already 15% of its people and that is something markets have appreciated. Markets are looking at the positive side that the response mechanism to the COIVD challenge has improved substantially of late.

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