Sensex breaches the historic 50,000 mark as Joe Biden's swearing in triggers a cheer in Indian markets
- The Indian benchmark indices Sensex crossed 50,000 mark for the first time ever amid a global stock market rally.
- The indices surged over 200 points on Thursday morning touching an all-time high of 50,126 points.
- Nifty50 was also trading at an all time high of 14,734 points at 9:30 am.
Nifty50 was also trading at an all time high of 14,734 points at 9:30 am.
Positive global cues and expectations of healthy quarterly results along with that of a supportive Union Budget FY22 powered the ascent of India's barometer index -- the S&P BSE Sensex -- to cross the 50,000-mark on Thursday.
Coming a day after Joe Biden's inauguration as US President, the BSE Sensex mirrored its Asian counterparts in having a gap-up opening. Biden on his first day of Presidency rejoined the US to the Paris climate act, WHO and also revoked the travel act.
These were the top gainers and losers in the Nifty Pack on January 21 at 9:30 am:
|Top Gainers||Top Losers|
|Tata Motors||Adani Ports|
The gains of last the 5,000 points in Sensex has come in just 32 trading sessions.
Moreover, expectations of an even faster economic recovery on the back of the vaccination programme have been cited as other factors for the up-move.
Besides, easy liquidity conditions across the global have been funnelling into India's market, as FIIs' shore up their stakes and pump-up this rally.
AdvertisementHealthy buying was witnessed in auto and telecom stocks. A positive trend in the global markets also supported the indices on Thursday.
Further, rise in the shares of index-heavyweight Reliance Industries also lifted the Sensex. RIL shares were trading at Rs 2,077.50, higher by Rs 22.65 or 1.10 per cent from its previous close.
"Expectations of turnaround in the economy post Covid vaccinations and continued FPI inflows have led to this kind of gains for Indian markets in a globally low interest scenario," said Deepak Jasani, Head of Retail Research at HDFC Securities.
AdvertisementAccording to Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services: "Sensex touched the historical levels of 50,000 today for the first time ever. Indian markets have been witnessing strong momentum over the past few months on the hopes of a faster economic recovery after the pandemic lockdown. Also positive global cues, sustained FII inflows and strong corporate earnings kept the sentiments high."
"Buzz around the upcoming Budget has also added strength to the markets. The Budget could potentially lay the foundation for a long term economic growth path."
Besides, Likhita Chepa, Senior Research Analyst at CapitalVia Global Research said: "Since the March'2021 lows of Covid-19, there has been a one-way rally and the markets have grown almost 100 per cent from the March lows. Important events to watch out for are the earning announcements for Q3 and then the general budget from which the expectation is huge. So far, the results have been very good and in-line with the street expectations because of which, we have seen rally in IT and now we are seeing the same in banking as well."
Advertisement"On-time execution of vaccination programme and the expectations of reaching a conclusion on farmer's protest are some of the reasons for which market is in a cheerful mode."
(With inputs from IANS)
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