Sensex At 60,000: Should You Be Investing?

Existing investors should act according to their financial goals and not just based on the Sensex or Nifty levels

- Arshad Khan

With the BSE Sensex adding the 5,000 points in just 28 sessions to breach the 60,000-mark for the first time in its 31-year long journey and the bulls seemingly in complete control of the market, the desire to invest in equity and make quick money escalated like never before.

The exuberance in the market though should make investors – existing or prospective – to pause for a moment and seek answers to some of the fundamental questions. Should new investors, who have been watching from the fringes this surge should join the party or should existing investors book profit at current level and then join the back when there is a price correction?

In order not to get carried away by the enthusiasm in the market on Sensex reaching the milestone of 60,000, you must listen to what experts have to say, and follow the well-laid out financial paths to continue making money.

But before you start, here is a caveat.

“Market valuations are rich. Retail investors are driving the market aided by the humongous liquidity available in the financial system. however, market cannot be a one-way street. at high valuations markets are vulnerable to sharp corrections,” said VK Vijayakumar, chief investment Strategist at Geojit Financial Services.

So, what should be the investor’s strategy at a time when valuations are at an all-time high and yet the exuberance in markets refuses to die down?

VK Vijaykumar has a few words of wisdom for retail investors — investors’ response to the market should be based on their financial goals.