BSE Sensex hits the psychological 50,000-marks for the first time ever on Thursday. It took a little over three months for BSE Sensex to climb from 40,000 to 50,000 points and took just nine sessions to gain 1,000 points from 49,000 points.
It is an historical moment for all the investors as well employees as it is better than expected.
On the other hand, Nifty records 14,700 points to make a crucial level on the surging index. According to available data, the index of the Nation Stock Exchange (NSE) closed the previous session with a P/E multiple of 39.55. As per the analysts’ review on the hike, even as Sensex hit 50,000, there are bumps ahead. The market is likely to turn highly volatile during the Union budget 2021.
It is said that the reason behind the historical record is Union Budget 2021. It can be articulated that Government of India can announce the big relief and investment into the MSME sectors to recover their losses during the FY 19-20. Due to the lockdown, the economy was affected roughly but segments of various market trends are improving. Besides budget 2021, there are other reasons which have also played a major role to reach 50,000-mark at the BSE index.
The optimistic views regarding the COVID-19 vaccine, news of new US president Joe Biden’s administration, corporate earnings, and IPO push are the backstage performer in making the first ever record in India’s stock market.
Today’s rally in BSE Sensex was fuelled by buying in index heavyweights such as Reliance Industries Ltd RIL, ICICI Bank, Bajaj Finance, Infosys, Axis Bank, HDFC twins, TCS and Kotak Mahindra Bank among others. The broader markets outperformed the equity benchmark today. S&P BSE MidCap index jumped 0.69 per cent or 132 points to 19,288, while the BSE SmallCap index hiked 0.68 per cent or 126.86 points to 18,870. While in the list of losers of the day, name recorded ONGC in the Sensex pack followed by SBI, Bharti Airtel, NTPC, and Sun Pharma.
According to the market experts, better-than-expected fourth-quarter (October to December) earning, COVID-19 vaccine rollout and other supporting global cues are fuelling the up move in the equities.
Equity benchmark Sensex declined 167 points to close at 49,624.76 on Thursday, after hitting the historic mark.
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