The BSE Sensex on Monday closed at 60,746.59 points, up by 786.74 points, mainly due to the US factors, said a senior official of Geojit Financial Services.
“The ongoing rally which has taken the Sensex above 60,000 has been triggered mainly by the rally in the mother market US where the Dow has recorded four straight weeks of gains,” Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said.
According to him, the US market rally, in turn, has been triggered by the strong US Q3 gross domestic product (GDP) data which surprised on the upside with a 2.6 per cent growth.
The market, which had discounted an immediate recession, is now discounting a possibility of a soft landing for the US economy, that is, the Fed might succeed in taming inflation without pushing the economy into recession, Vijayakumar said.
He said in India, foreign portfolio investors (FPI) turning buyers is another positive for markets.
“Short covering can take the market higher. But at higher levels there will be institutional selling putting a cap on the rally. Some profit booking is advisable on rallies,” Vijayakumar added.