Sensex Hits 50,000 Mark. What should Investors do?

HDFC Mutual Fund converts closed-end fund into open-ended

Sensex Hits 50,000 Mark. What should Investors do?

Sensex Hits 50,000 mark: Yesterday, Sensex started its trade at 50,206.26 level. Hitting the 50,000 marks on Thursday, the index has raised nearly 93% from the March lows. Due to the national lockdown to prevent the spread of COVID, the markets hit lows.

Hitting the 50,000 marks, Sensex is reflecting positivity about the future. Mutual fund managers said that it reached 50,000 level in a low period than most of us thought a few months back is an affirmation of the exceptional resilience and massive potential that the Indian economy presents.

Moreover, the economy returns high nominal GDP growth equities will increase. Furthermore, investors may benefit from this by taking a long-term view.

According to the reports, some market experts said no one could expect the Sensex to reach the 50,000 level. They also felt that BSE Sensex‘s change is only for the better and quicker than expected economic recovery. Moreover, substantial foreign portfolio investment is the primary reason for the increase in Sensex.

However, the investors might behold over their equity allocations and map them to their financial goals. The investor should remember that any fresh allocation to equities would be in a staggered way.  

Another known expert from the mutual fund industry said that the rally in banking, PSU, Metals, Auto, and IT sectors stocks helped Sensex hit the high level of 50,000. The stock market may continue to trade well in the future. However, the index’s major ups and downs may not affect the investors much in the future.

According to the source, India is excellent land for investors in utilizing the opportunities. However, selling the existing shares or buying new stocks are the big deals on the investors’ minds after hitting the 50,000 level. As per the news, the rally in the market is enhanced by sufficient liquidity, corporate resilience, and broader economic recovery.

What should Investors do?

Mutual Fund managers said that this time is best for those who have already been invested in the market. Those might enjoy the returns for those who want to put their money in the pool of mutual funds would spend money in liquid funds. Moreover, invest through a systematic transfer plan for the next one to two years.

However, investors should focus on portfolios at this time which may require rebalancing to covenant their portfolios aren’t overweight in a particular resource class. In the broader markets, the banking, Midcap, and Smallcap indices are trading at relatively cheaper valuations and ready to be cherry-picked.

Disclaimer: This article offers just information regarding the scheme. It does not provide any advice or investment tips to investors. MF investments are fixed to market risk. Please consult your financial advisor before investing.

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