Markets likely to see profit-taking after 50K peak
NEW DELHI: The Indian stock market which added another feather to its cap by scaling the 50,000-mount for the first time ever may witness some profittaking ahead but for now, all eyes are on the upcoming Union budget that will influence the onward journey of the bluechip index, according to analysts.
From witnessing gigantic losses to record-shattering gains, investors witnessed a wide array of emotions in 2020. Markets showed volatile trends last year, with the benchmark crashing to its one-year low of 25,638.9 on March 24, only to roar back to reach record highs in the later part of the year.
The record-breaking run has been continuing, with the benchmark reaching the momentous 50,000-mark on January 21. The 30-share BSE index jumped to its record high of 50,184.01 during the trade on Thursday.
“Expect markets to go into consolidation phase in the second half of this calendar year and again resume the upward trajectory from CY22 onwards,” Rusmik Oza, executive vice President, Head of Fundamental Research at Kotak Securities, said.
The entire plot changed for the markets in just ten months from massive losses to recordbreaking peaks and this came at a time when the world is facing a health crisis.
Market analysts have attributed the sharp rebound in the market following the March crash to a host of factors such as abundant liquidity injected into
the global financial system by leading central banks of the world, unprecedented retail investor participation and in recent months, on hopes of successful vaccines.
Driven by the improved investor sentiment, the market capitalisation of BSE-listed companies is also making new records and is currently at over ₹194 lakh crore. The BSE-listed companies market cap had crossed the landmark ₹100 lakh crore on November 28, 2014.
In 2020, investors grew richer by ₹32.49 lakh crore helped by massive returns in the equity market which had a roller coaster ride during the year hit by the coronavirus pandemic.
From March 23, 2020 when the benchmark indices posted their worst ever one-day crash till now, the investor wealth has risen by a whopping ₹92,48,551.09 crore.
During the entire 2020, the 30-share BSE Sensex made monthly gains in seven while closing with losses in five of them.