Happenings :
- Donald Trump supporters stormed Capitol Hill on Wednesday afternoon.
- But the Dow Jones Index was unruffled and ended the day at an all-time high.
- Rather than being influenced by this, the markets were enthused by the news of the Democratic Party winning two Senate seats from Georgia and getting a slender majority (with Vice President-elect Kamala Harris’s vote), Which could ease the path of a big stimulus announcement by President-elect Joe Biden after he takes charge on January 20.
- Markets are more about trade and commerce and now politics does not matter much in commerce as it is big and powerful.
- In India, the Sensex closed at record high on Friday.
- It is important to note that the economic stimulus in the US and inflow of funds into Indian equities has been one of the dominant factors for the rise of equity markets.
- So, a majority for Biden on the Senate floor and his ability to push a stimulus will have a positive impact on Indian markets as a part of that money is expected to find its way into Indian equities too.
- Foreign portfolio investors’ net investment of Rs 2.22 lakh crore in Indian equities since April 1, 2020, Resulted in Sensex and Nifty gaining 63.4% and 64.4% respectively.
- Though FPIs have been dominant players, Indian investors — both retail and HNIs (high net individuals) — also played a big role in the market surge.
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