Sensex over 50K mark as Biden, Budget 2021 fuel fast recovery hopes
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.
Let us look at the crucial factors and numbers in play here.
Sensex loose early gains due to profit booking
The barometer index dipped below the psychologically important mark due to profit booking at the end of the day`s trade. The Sensex closed at 49,624.76, lower by 167.36 points, or 0.34 per cent, from its previous close of 49,792.12. It opened at 50,162.05 and touched a fresh all-time high of 50,184.01 points. Source: Reuters
New record high for NSE too
The Nifty50 on the National Stock Exchange (NSE) also touched a new record high of 14,753.55 points. It ended the day`s trade at 14,590.35, lower by 54.35 points, or 0.37 per cent, from its previous close. Source: PTI
Joe Biden factor
Earlier in the day, Sensex crossed the 50,000-mark. Coming a day after Joe Biden`s inauguration as US President, the BSE Sensex mirrored its Asian counterparts in having a gap-up opening. Source: Reuters
5,000 points gain in just 32 trading sessions
In fact, the positivity sentiment led it to open above the 50,000-mark. The gains of the last 5,000 points in Sensex has come in just 32 trading sessions. Source: PTI
Vaccination drive, economic recovery other driving points
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. Source: PTI
Liquidity in global market
Besides, easy liquidity conditions across the global have been funneling into India`s market, as FIIs shore up their stakes and pump-up this rally. Source: Reuters
