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Stock Market Creates History: India races towards fastest economic recovery with an all-time high Sensex, Nifty

D-street saw fireworks as BSE Sensex crossed the 50,000-mark this morning while Nifty 50 index also moved 14,700 mark for the first time ever. Forex reserves of India as well are on an all time high.
Bombay Stock Exchange [IMAGE – PTI]

Sensex crossed the key 50,000 mark on Thursday for the first time since its debut at 100 in April 1979. In the 43 years of its inception, the benchmark has given compounded annual returns of 15.5%. The performance of the index overshadows its global peers such as Hong Kong’s Hang Seng which grew at 10% CAGR, S&P 500 in US at 9%, Dow Jones 8.9%, Japanese Nikkei 3.7%.

The indices surged over 200 points on Thursday morning touching an all-time high of 50,126 points. Nifty50 was also trading at an all time high of 14,734 points at 9:30 am.

For several days, the Sensex had been on the verge of crossing the 50,000-mark. With the world’s largest coronavirus inoculation drive underway in India, experts remain hopeful.

The rally in the global stock was largely influenced by the swearing in ceremony of the new US president Joe Biden. The US stocks also closed at an all-time on Wednesday following the inauguration of Joe Biden as the 46th President of the United States.

Dalal Street is euphoric over the milestone achieved as market experts hailed the feat while advising caution to investors as well owing to steep valuations and an impending correction.

This is an indication that the businesses as well as the Indian economy are on a track of faster recovery than other countries in the post-Pandemic world.

It is also being said that India’s GDP has now resumed to a positive growth after the severe decline after the lockdown imposed by the government.