THE UNEXPECTED BULL RUN

 

Sensex crossed 60000 points in
Bombay Stock Exchange. The whole world is suffering from coronavirus and all were expecting a financial crisis then why there is a sudden surge in Indian stock markets? The answer is the UNITED STATES OF AMERICA.

 Even though China is a neighbour country of India corona knocked on America’s door for the first time. In February 2020 US found the first covid patient. And the American stock market collapsed. Though the crash began on 20th February selling was boosted during the first half of march to mid-march. During the crash, there were many daily drops in global stock exchanges.

But America is a very powerful country especially economically.US did not disappoint the entrepreneurs. The US reduced interest on the loans. So that they can take loans and can survive their price businesses. But Investors in the US were in a double whammy. Falling s stock market on the one hand and 0.20% interest rate on the other. Investors wanted a growing economy to invest the money.

And suddenly Indian stock market 
collapsed. Sensex fell around 13000 points. That was the biggest crash in Indian history. Indian investors were at a loss but that was a chance for FII (Foreign Institutional Investors). They invested a very large amount in Indian stock markets.

After a huge loss, DII (Domestic Institutional Investors) like LIC, Kotak Mahindra etc. again invested in the stock market. Hence stock market rebounded in a very short period. In February Sensex was on 27000 points and after a year in February 2021 Sensex was 50000 points. It’s the biggest surge in stock market history and crossed 60000 points on 24 September. PE ratio ( price per earning ratio) is 41 which is the highest. 

       Even though there was a corona crisis,the stock market never closed. The government also shut downed essential vegetable markets,but the stock market remained open.It is not known whether this was directly related to international politics and elections in the United States, but the fact is that it harmed Indians and benefited the United States.

Even foreigners are also investing in the Indian Stock Market. But common Indian man is not interesting. They are still thinking that it is a gambling game.
As long as Indian investors do not leave investing in F.D and gold and enter the stock market, foreigners will continue to make money by investing in our markets and Indians will continue to live at 8% interest.