Sensex goes past 50,000, a new landmark amid pandemic (2nd Ld)
Mumbai, Jan 21 (IANS) The much-anticipated moment of the Indian stock market for the past few weeks arrived on Thursday as the BSE Sensex crossed the 50,000 mark for the first time in its history.
The achievement gains significance as it comes on the back of bull-run despite the pandemic and the eventual economic slowdown.
The Sensex managed a near two-fold growth within a period of 10 months since it hit a decade low of 25,638.9 points in March 24, 2020, amid the initial impact of the pandemic globally.
The surge in the markets was largely fuelled by the foreign institutional investors (FII) and their inflow was recorded at all-time high levels. India received around $22.5 billion or Rs 1.7 lakh crore in equities in 2020.
The Net inflow of foreign portfolio investment so far in the current financial year stood at over Rs 2.38 lakh crore, according to NSDL data. This is the highest FPI inflow ever in a fiscal.
The surge in foreign funds came due to high level of liquidity across the globe on the back of stimulus measures and zero or near nil interest rates in several countries in major economies including the US and European countries.
It was because of the FIIs that the Indian equity market was able to defy the negative sentiments amid the pandemic.
Along with the Sensex, the Nifty50 also has been advancing to new highs and nearing the 15,000 mark.
On Thursday, Nifty touched a new record high of 14,738.30 points. Sensex touched its all-time high of 50,126.73 points.
Analysts say, although there are concerns of stretched valuations and there may be some correction in the near term, the underlying sentiments in the market would continue to be bullish for some time.
Market also anticipates favourable announcements for the economy and investors in the upcoming Union Budget