Sanjeev Kumar, a 40-year-old businessman, is a happy man these days and the reason is stock market’s northward march in the last couple of days. The randomly walking northward market has brought smiles on dreary faces of many investors like Kumar as their patience with the stock market finally paid off. Now they are on selling spree.
Interestingly, the stock market is continuously breaching previous levels and the BSE (Bombay Stock Exchange) SENSEX ended at an all-time high of 24068 where as the NSE’s (National Stock Exchange) Nifty closed at 7172 on Tuesday.
“I have been waiting for this surge since the market tanked six years back. Booking profit is the only option before the market corrects itself,” said Kumar.
The surge in the stock which is triggered by increased flow of investments by Foreign Institutional Investors since April beginning has also instigated a mad rush of profit booking among investors. Petty investors have preferred to sell unlike big investors who are consolidating their position.
“Customers have started booking profit as they are getting good capital gains after a very long time. This pattern is likely to continue for few more days,” said Pravin Murarka of Poonam Securities.
The joy of Rakesh Pandey, a builder by profession, reached a new high every time the indices touched a new high. Disappointed for about three years about the value of investment that was reduced by 50 per cent from the level when he entered the market, Pandey finally booked around 20 per cent gain on his investment.
Market experts believe that indices will continue the surge till the lok Sabha results is announced and the uncertainty about the next government is fuelling profit booking.
Experts also opine that the market will correct itself once the cloud over next party at centre subsides.