InvestorQ : Now that Sensex his up almost 20% from the lows, can we say that the bottom has been made on the Indian markets?
Arya Nanda made post

Now that Sensex his up almost 20% from the lows, can we say that the bottom has been made on the Indian markets?

Answer
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Deepa Salunkhe answered.
6 months ago


It was a smart rally on the Sensex on 09 April, the last trading day of the week. The Sensex rallied close to 1300 points on expectations of a fiscal stimulus coming soon. You are right that the Sensex and the Nifty are now up about 21% from its March lows but that is on a much lower base. The market is still 22% below its peak levels. However, the bets seem to be heavily tilted in favour of the pandemic abating and the stimulus making an impact. That is something we will have to see over time. Also, there is a lot of short covering in the markets and it remains to be seen if the short covering will be later supported by fresh buying.