Indian equity benchmarks skyrocketed in Samvat 2077 with the 30-share Sensex rising 38 per cent and the Nifty 50 index up 40 per cent. Both the benchmarks touched record highs for the first time with Sensex crossing 60,000 and Nifty above 18,000. Equities jumped on the back of economic recovery, vaccine success, containment of COVID-19 cases and high global liquidity despite a deadly second wave of Covid-19 infections that led to the lockdown in many parts of the country.
On Wednesday, the Sensex closed 257 points lower at 59,772 and the Nifty 50 index fell 60 points to 17,829.
“With the economic cycle accelerating, we expect corporate earnings growth to revive as well. Markets have always moved along with earnings growth. While there will be intermittent volatility, we expect the overall trend of the market to remain the same. Will remain positive even in Samvat 2078,” said Motilal Oswal, managing director and CEO of Mumbai-based brokerage firm Motilal Oswal Financial Services.
In Samvat 2077, buying was visible in all sectors with tremendous returns in all sectors. Nifty Realty Index was the top sectoral gainer with a gain of 126 per cent. The jump in realty stocks came on the back of easy liquidity conditions, with banks offering home loan interest rates at all-time lows. Nifty Metal, PSU Bank, Consumer Durables, Media and Oil & Gas indices also rose between 50-100 per cent.
How did the regional indices perform in Samvat 2077:
| index | Change (%) |
|---|---|
| Nifty Realty | 126 |
| nifty metal | 112 |
| Nifty PSU Bank | 106 |
| Nifty Smallcap 100 | 80 |
| Nifty Consumer Durables | 70 |
| Nifty Midcap 100 | 70 |
| Nifty IT | 64 |
| Nifty Media | 55 |
| nifty oil and gas | 53 |
| nifty bank | 38 |
| Nifty Financial Services | 37 |
| Nifty Auto | 37 |
| Nifty Private Bank | 28 |
| Nifty Healthcare | 24 |
| Nifty FMCG | 23 |
| Nifty Pharma | 18 |
| Source: National Stock Exchange | |
Mid- and small-cap stocks outperformed their larger peers in Samvat 2077 with Nifty Midcap 100 index gaining 70 per cent and Nifty Smallcap 100 index gaining 80 per cent.
Going forward, analysts expect the market to return to normal in Samvat 2077 considering the uptrend in the market.
“Currently the market is in a zone of caution. While the economic recovery is expected to be on track, central banks across the world may start unwinding their balance sheet expansion at the earliest. Hence, the coming Samvat year is expected to normalise. Economic activity is expected to normalize along with monetary policies of central banks around the world, as they face the challenge of balancing growth and inflation,” said Mohit Ralhan, Managing Partner and Chief Investments Said TIW PE official.
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