Even though the stock market is red today and someinvestors, especially short-term ones might be facing losses (either realisedor unrealised), still overall the optimism seems high.
In one of the benchmark indices of the Indian stock market,Nifty 50, four stocks today hit their 52-week high. For beginners in stockinvesting and trading, it is worthwhile to learn that the highest and thelowest price in the last one calendar year (including the current trading day,if applicable) hold significance as the breaking of either indicates along-term strength or weakness.
What is interesting to note is that all the stocks we aretalking about are from automobile sector.
It is estimated from this development that the story of theIndian economy is looking positive from the near-future onwards.
Fundamental analysis-wise, we know that in India, as in theworld, the pandemic COVID-19 is nearing the end of its threat with the vaccinationexercise progressing admirably.
Also, the hopes of political stability in the largestdemocracy of the world, America, with Joe Biden and Kamala Harris taking overtheir positions officially with the commencement of their oath-taking ceremony(see highlights of Joe Biden’s inauguration speech) have been playingtheir part in uplifting the stock markets around the world.
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Though there are some issues currently active in India andit may appear at a first glance that they might derail the economy. Themisunderstanding between the Naredra Modi-led central government’s farmer lawsand some farmers is not dampening the enthusiasm of investors. By inference, itis highly probable that this issue will be resolved to a mutually beneficialoutcome.
In a few weeks will be the anniversary of the pandemicCOVID-19, and whatever we all have faced, now the things are looking up andeven if it is not apparent now, the behaviour of the Indian stock market isindicating this to us.