3 Things To Do When Market Is At Record Highs

Stock markets around the globe are rallying as investors continued to bet on risky assets and higher returns on the back of positive vaccine news, the possibility of stimulus package announcements in developed countries, recovery in corporate earnings and better than expected economic data.

In India, a surge in inflows from foreign institutional investors aided the rally.

In November, foreign portfolio investors (FPI) pumped a net of Rs 60,358 crore into equities, the highest ever amount invested in the equity segment since the FPI data has been made available by the National Securities Depository Ltd (NDSL).

On Friday, BSE's Sensex surpassed 45,000 level, while NSE's Nifty 50 climbed above 13,200 on better-than-expected GDP data and a dovish monetary policy commentary from RBI. As many as 65 stocks in the BSE 500 index rose 10-50% in only 4 sessions including Tata Power, Maruti Suzuki, Sun Pharma, Adani Enterprises, Tata Chemicals, and Adani Power.

More than 250 stocks hit 52-week highs on Friday, of which 8 were Sensex stocks, while over 400 stocks hit upper circuits.

Markets are in a state of euphoria and some may feel like they are missing out on the gains while some other may be wondering if it is a bubble.

Trying to predict the markets or the future is impractical or rather, impossible. Nobody can predict the market's movements or moods.

Here are 3 things to do when markets are at record highs.

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The article is purely informational and is not a solicitation to buy, sell in securities mentioned in the article. Greynium Information Technologies Pvt Ltd, its subsidiaries, associates and the author do not accept culpability for losses and/or damages arising based on information in this article.