The market is riding high on the liquidity wave that has not only helped Indian shares recover losses suffered during the coronavirus-led crash in late March but has also lifted the Nifty to a new high of 13,000.
The index saw its worst showing in more than four years when it sank to 7,511 on March 24 amid fears of economic and earnings loss. It, however, started to recover within days and gained more than 73 percent to hit 13,048.75 on November 24, exactly after eight months. The BSE Sensex, too, scaled a new peak of 44,499.62.
Better-than-expected September quarter earnings, consistent improvement in economic data and positive news on coronavirus vaccine trials also aided the rally.
“Indian indices opened on record-high levels on Tuesday, tracking gains in Asian peers, on the back of the progress made on the COVID-19 vaccine and the prospects of a speedy global economic revival,” Hemang Jani, Head – Equity Strategy-Broking & Distribution at Motilal Oswal Financial Services told Moneycontrol.
Broader markets have also participated in the run as the Nifty midcap index is up more than 75 percent and smallcap over 87 percent. IT is the biggest gainer among sectors with a 97 percent jump followed by auto, bank, energy, pharma, infra and metal, which have gained 63-90 percent in eight months.
A look at the Nifty500 index shows that almost all segments participated in the rally. As many as 97 percent stocks from the index have shown positive returns and 94 percent have registered double-digit returns from lows of March.
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