Another buoyant week and the Nifty Index has touched a new all-time high. Interestingly the trigger for such enthusiasm seems more mood-related than related to actual corporate results. What Corporate India’s big honchos say is immediately loved by the market participants.

Evidence would be the 1-1-1 promise by Mukesh Ambani on hydrogen, which quickly bumped up the price of the stock and many others. Another instance would be a large insurance company acquiring another player in the industry by paying low cash and issuing high-priced equity, which also acted as a catalyst to fuelling such a positive mood.

It is clear, the market mood wants to be held up by favourable news. When the market is in such a mood it is common to witness new highs. The coming weeks will open to us an extremely sentiment-driven market with an overwhelmingly positive mood. Investors need to approach such moods very carefully.

The priority for an investor in such a market is to understand his financial goals, appreciate risk and stay aligned to what is good for him.

Recent Posts

Art of Getting Your Asset Reset Right

Posted on February 18, 2024

Multi-Asset Investing: Why It Makes Sense

Posted on February 13, 2024