MUMBAI: Indian stocks hit record highs on Thursday , tracking a global rally after the inauguration of US President Joe Biden and reflecting hopes of a domestic economic recovery following this month's vaccine roll-out.
But fears of a second wave of coronavirus infections have not materialised, allowing Prime Minister Narendra Modi's government to lift restrictions and resume economic activity. "The absence of renewed lockdowns means that economic activity will normalise quite quickly," said Ashutosh Datar, an independent economist."Also, even if India does face a second wave, it won't be as bad as what's happened in the West, since a fair number of people will be vaccinated in the next few months," he told AFP.
Nothing has miraculous has happened to the Indian economy that warrants this spike. They are going with market sentiment in the US and all bourses are up because of that.