Sensex ends above 50K for first time, soars 9% in three trading sessions

By Administrator_ India

Capital Sands

The Sensex on Wednesday closed above the 50,000 mark for the first time as the Budget-fuelled rally continued for the third straight session. The index rose 458 points, or about 1 per cent, to finish at 50,256, gaining close to 9 per cent in the last three trading sessions.

Investor wealth has jumped by Rs 12.31 trillion since the Budget day, taking the market capitalisation of all BSE-listed companies to a record Rs 198.43 trillion.

In the Union Budget for 2021-22, presented on Monday, Finance Minister Nirmala Sitharaman unveiled a spending plan to revive the economy, triggering the latest bout of optimism. The Street has cheered the announcements around asset monetisation, privatisation, and capex spends while maintaining the status quo on taxes.

The 50-share Nifty index gained 142 points, or 0.97 per cent, to end at 14,790 — less than 1.5 per cent short of the 15,000 mark.

These milestones looked improbable in March last year, when the Sensex had plunged to 25,981 and the Nifty dropped to 7,610 during the peak of the Covid-19 sell-off.

The two indices have surged over 93 per cent each from the March lows, supported mainly by foreign inflows and optimism around a sharp recovery in the economy and corporate earnings. The Sensex now trades at 22x its estimated earnings for FY23, much higher than the long-term average of 16x. Some believe the valuations will normalise as earnings are expected to rise sharply.

Analysts said the sharp increase in capital expenditure and impetus to investment activities would boost earnings for companies operating in this space. Also, the monetary easing in the western world and weak dollar will continue to act as key tailwinds.

Related posts

Nikkei Closes Above 33,000 For The First Time In 33 Years

Japan’s benchmark Nikkei gauge surged on Tuesday, closing over 33,000 for the first time in 33…
Read more

Carlsberg Expects Lower Beer Consumption To Hit 2023 Growth

Danish brewer Carlsberg (OTC:CABGY) on Tuesday forecast organic operating profit growth in 2023…
Read more

Flavour Maker Givaudan Beats Earnings Forecasts in a Tough Year

Swiss fragrance and flavour maker Givaudan on Wednesday reported better-than-expected earnings for a…
Read more
Become a Trendsetter
Sign up for Davenport’s Daily Digest and get the best of Davenport, tailored for you. [mc4wp_form id="729"]

Leave a Reply

Your email address will not be published. Required fields are marked *