Equity investors have witnessed a wealth addition of more than Rs 31 lakh crore (Rs 31,18,934.36 crore) in the first four months of the current fiscal, helped by an overall bullish sentiment in the market. The 30-share BSE Sensex has jumped 3,077.69 points or 6.21 per cent during April-July this fiscal.

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Reflecting an upbeat sentiment in the market, the benchmark had reached its all-time high of 53,290.81 on July 16, 2021. It closed at its lifetime high of 53,158.85 on July 15. Thanks to the optimistic investor sentiment, the market capitalisation of BSE-listed companies has zoomed Rs 31,18,934.36 crore to reach Rs 2,35,49,748.90 crore -- its record high level -- on July 30.

"Money flow and liquidity are the key factors behind investors' bullish sentiments," said Rahul Sharma, Co-Founder, Equity99. Sharma added that markets have performed extremely well post the sell-off in 2020. The benchmarks have more than doubled from the lows of March 2020.

"Once the rally began, volatility dropped, and the bull market climbed significantly," he said. In the entire 2020-21 fiscal, the market capitalisation of BSE-listed companies zoomed Rs 90,82,057.95 crore to Rs 2,04,30,814.54 crore. The 30-share BSE benchmark had jumped 20,040.66 points or 68 percent last fiscal, braving many uncertainties due to COVID-led disruptions.

VK Vijayakumar, chief investment strategist at Geojit Financial Services said, "First, it is important to appreciate the fact that this is a global bull market. Except a few markets like Egypt and Iran, all other markets are experiencing a bull run. The major factors powering this rally are huge liquidity that has been created by the leading central banks of the world, particularly the US Fed, the historically low-interest rates and unprecedented retail investor participation. Of this, the huge global liquidity factor is very important." Analysts also said that Covid-19 vaccination drive is also adding to the bullish sentiment.

When asked if this market rally would continue, Vijayakumar said, "The biggest threat to the continuation of the rally is the excessive valuation in the market. At high valuations markets are vulnerable to corrections. Some presently unknown factor can trigger a correction, globally. If that does not happen, the global liquidity will keep markets resilient, or it may even take the markets forward."