Sensex gains 92% since last Diwali, most in 6 yrs

AHMEDABAD: Last Diwali to this Diwali, investors have laughed all the way to bourses with sensex giving a whopping 92% return to investors on Dalal Street. This is the highest jump in the last six years since the markets started gallopping in 2003. Amidst global uncertainty and doom, the benchmark sensex has rallied from 9008 points to 17,322 points on October 16, posting over 92% rise on a day before Diwali celebration this year.
With rising optimism about speedy recovery in global markets and liquidity flowing into emerging markets, Indian stocks have lifted overall investment sentiment in the country, said Siddtharth Bhamre, an analyst with Angel Broking.
Not only has Sensex given 92 % return, many front-line stocks have given more than 100% return with FIIs and other investors lapping up stocks whose valuation reached mouth-watering levels at Diwali time last year, he added.
Last year's Diwali was the darkest festival of lights, as the market plummeted more than 55% from a level of 19058 points to 8509 points due to global financial crisis, huge redemption from FIIs and lack of any positive development locally.
With FII pumping in more than Rs 65000 crore liquidity since last Diwali, majority of market pundits have now turned 'cautious' and express doubts about sustainability of the rally post Diwali. "Valuations are now stretched," is a common refrain.
However, post-Diwali returns in five preceding years clearly suggest that markets move in positive territory at least for one month after Diwali. One month from Diwali, markets have given positive return of 1 per cent to 10 per cent in recent years.