Market back at pre-Covid level

Investors regain ` 45 L cr after March dip

It was a good week for the market, with banks and other financials helping market benchmarks Sensex and Nifty-50 to regain pre-Covid-19 levels.

BSE’s market capitalisation stood above Rs 1.58 lakh crore compared to the March 2020 low of over Rs 1.13 lakh crore, indicating investors regaining around Rs 45 lakh crore in the sharp recovery so far.

During the week, the Nifty Bank index gained a hefty 9.97 per cent, of which 4.19 per cent gain came on Friday.

On Friday, the Sensex closed at 39,467, up 353 points while the Nifty-50 gained 88 points at 11,647.

The Nifty closed the week up 2.43 per cent.

The key indices held up admirably above the mark buoyed by expectations from the twin verdicts next week which would have an impact on banking stocks, analysts said.

The Supreme Court, during the week, heard a plea seeking interest waiver for six months during the loan moratorium period granted by the Reserve Bank. The apex court adjourned the hearing to September 1 while giving the government one week’s time to clarify its position.

The SC may also pronounce order in the matter of adjusted gross revenue dues of the telecom companies next week.

Vikas Jain, senior

research analyst, Reliance Securities said, "The positive news flow from the domestic and global markets set the ball rolling for banking stocks. The US Federal Reserve’s new policy stance to let inflation run higher and unemployment run lower, meaning prolonged low interest

rate, is one of the reasons which created positive sentiments on banking stocks.”

The major gainers included Indusind Bank

(32 per cent), Tata Motors

(18 per cent), Axis Bank (16 per cent), SBI (13.6 per cent) and Shriram Transport (12.6 per cent).