BSE Sensex breaches 50,000 points for the first time! BJP cheers

Mumbai, January 21: Breaking the taboos of the coronavirus pandemic spread across the country that directly or indirectly affected the Indian economy, the BSE Sensex breached 50,000 points for its first. "This has happened DESPITE the Corona crisis that continues to create havoc and bloodbath in the major economies. This is not a fluke but a result of sustained policy reforms backed with transparent and fair regulation", noted BJP in a tweet.

 

The Sensex surged 334.61 points (0.67 per cent) to hit a record high of 50,126.73, while the broader Nifty 50 too climbed 93.60 points to touch a new lifetime high of 14,738.30. RIL, Bajaj Finance, ICICI Bank and Axis Bank were leading contributors to the rise in Sensex during the early trade on Thursday.

 

On Wednesday, the Sensex had rallied 393.8 points, or 0.8 per cent, to close at 49,792.12. The Nifty 50 rallied by 123.85 points, or 0.85 per cent, to close at 14,644.7. Among the sectoral indices on the National Stock Exchange (NSE), the Nifty Auto index was trading over 1 per cent higher on early trade Thursday driven by gains in the shares of Tata Motors, Eicher Motors and Bajaj Auto. The key Bank Nifty too was up around 0.5 per cent led by RBL Bank, IndusInd Bank and Bandhan Bank.

 

 

 

The liquidity expansion by the central bank and the ample FII driven liquidity, a V shaped recovery of growth aided by the discovery of vaccine, and most recently the change of guard in US have been some of the factors propelling markets higher and higher. As the sensex crosses the 50,000, the valuations do look stretched. The valuations are a function of earnings and earnings not coming through remains the key risk at the current juncture.

 

Meanwhile, Asian stocks rose to new record highs on Thursday, tracking US markets as investors hoped for more economic stimulus from newly inaugurated US President Joe Biden to offset damage wreaked by the COVID-19 pandemic. Republicans in the US Congress have indicated they are willing to work with the new president on his administration’s top priority, a $1.9 trillion US fiscal stimulus plan, but some are opposed to the plan’s price tag.

.

.