What is fuelling rally on Indian markets? Market expert Ajay Bagga explains
Zee Business Managing Editor Anil Singhvi spoke to stock market expert Ajay Bagga to fish out the reason for this rise as well as find out which shares will give greater returns in the near future.
The stock market in India have witnessed continuous rally for the last one week that led to an around 1200 points rise by the NSE Nifty. Zee Business Managing Editor Anil Singhvi spoke to stock market expert Ajay Bagga to fish out the reason for this rise as well as find out which shares will give greater returns in the near future.
Speaking on the major triggers that fueled stock market rally, Ajay Bagga said, "It's not that just the Indian stocks have rallied. In fact, there has been rally in the global stocks and hence the recent rally at the Dalal Street should be attributed to the strong global sentiments mainly due to the global stimulus package and hopes of fast recovery in the world economy after the opening of the lockdown in majority of the countries."
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On US-China spat that hit the global indices dearly prior to this rally, Bagga said that last Friday, Trump didn't speak much on the Hong Kong matter and this gave an indication that what he was doing earlier was a mere political stunt.
For investors, on shares to buy in such a rallying market, Bagga said, "Banking and financial stocks have been hit dearly during the global sell off. However, healthcare, especially pharma and IT stocks were able to hold their ground. Now, after the weakness shown in US dollar, IT stocks are under pressure and healthcare stocks are also not able to gain further at such a rapid speed. But, these two sectors would continue to remain evergreen stocks for the investors."
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On what next after healthcare and IT, Bagga said that banking and NBFC stocks are expected to gain lost ground at a faster rate and hence, he added, "I would advise investors to start investing in the banking and NBFC stocks once they book profit in pharma and IT stocks."
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