Markets surge over 100% from lows seen in March ’20
THE SENSEX ROSE 617.14 POINTS OR 1.22% TO CLOSE AT 51,348.77 ON MONDAY. THE NIFTY GAINED 191.55 POINTS OR 1.28% TO END AT 15,115.80
MUMBAI: India’s equities markets have not only recovered but also doubled from March last year when the lockdown imposed to contain the spread of the coronavirus sent markets in a freefall.
With the rally on Monday, benchmark indices BSE Sensex and Nifty have soared more than 100% from the lows hit on 24 March. The BSE mid and small cap indices surged 106% and 125% respectively during the period.
The record market rally swelled investor wealth by ₹101 trillion during the period as they piled on stocks betting on a faster-than-expected recovery in the economy from the widespread turmoil caused by the pandemic.
Markets gained for the sixth consecutive session on Monday, mostly fuelled by optimism following the Union budget. Buying in global peers also supported investor sentiment. Investors worldwide hoped that a $1.9 trillion covid-19 aid package will be passed by US lawmakers as soon as this month in line with the rolling out of coronavirus vaccines.
The Sensex rose 617.14 points or 1.22% to close at 51,348.77 on Monday.
The Nifty gained 191.55 points or 1.28% to end at 15,115.80. Investor wealth increased ₹16.70 trillion in the last six trading sessions.
“Strong global cues supported the domestic rally. The overall market is maintaining its buoyancy with a rally in all sectors, especially auto, IT and metals. Improved domestic outlook is encouraging sustained foreign institutional investor inflows,” said Vinod Nair, head of research, Geojit Financial Services.
“The Indian economy may be on the verge of a multi-year investment cycle similar to the 2003-11 cycle, given positive drivers in two segments of gross fixed capital formation (household, private). There is one big difference between 2003 and 2021 though. The Nifty 50 now trades at 22.7 times one-year forward earnings per share, while it traded at 6-8 times before the start of the 2003-08 bull market, which was led by strong GDP and earnings growth, in turn powered by robust household and private sector investments,” Kotak Institutional Equities said in a note.
MELBOURNE: It’s been so long since he had a sizeable crowd to play for, the showman in Novak Djokovic just had to come out. Top-ranked Djokovic has won eight titles at the Australian Open. He began his quest for a ninth with a clinical, 6-3, 6-1, 6-2 victory over Jeremy Chardy in the closing act on Monday.
“Makes my heart full to see the crowd in the stadium again,” Djokovic said at the 15,000-seat arena, which was about onethird full. “This is the most people I’ve seen on the tennis court in 12 months. I really, really appreciate your support.”
After an austere year for tennis during the pandemic, there was a unanimous refrain from players across the day, starting with Naomi Osaka in the opening match on Rod Laver, to Serena and Venus Williams, and local favourite Nick Kyrgios.
Serena arrived ready to race to start her bid for a recordequalling 24th Grand Slam singles title. In a colourful one-legged catsuit she said was inspired by former Olympic champion Florence Griffith Joyner, Williams dropped her opening serve but rebounded to win 10 consecutive games and beat Laura Siegemund 6-1, 6-1. As she left the court she flexed her biceps, and later donned a T-shirt that read “Unstoppable Queen.”
Speed was of the essence also for No 2 Simona Halep and No 3
Osaka, who each only dropped three games. US Open champion Osaka beat Anastasia Pavlyuchenkova 6-1, 6-2, and two-time major winner Halep beat Australian wild-card Lizette Cabrera 6-2, 6-1. Joining them in the second round were No. 7 Aryna Sabalenka, two-time Wimbledon champion Petra Kvitova, French Open winner Iga Swiatek and 2019 US Open champion Bianca Andreescu, who returned from 15 months on the sidelines to beat Mihaela Buzarnescu 6-2, 4-6, 6-3.
Venus, a seven-time major winner, won a Grand Slam match for the first time since 2019. Playing in her 21st Australian Open, the elder Williams beat Kirsten Flipkens 7-5, 6-2. At 40, Venus is the oldest woman in this year’s draw and just the sixth player in her 40s to compete at the Australian Open.
Two weeks in hard lockdown didn’t help 2016 Australian Open winner Angelique Kerber, who lost to Bernarda Pera. US Open champion Dominic Thiem was a break down and saved set points before beating veteran Mikhail Kukushkin 7-6 (2), 6-2, 6-3 in his first match at the tournament since losing last year’s final to Novak Djokovic.
Alexander Zverev lost the first set in a tiebreaker then lost his temper in the second and belted his racket into the court. Letting off a little steam worked for the US Open finalist, who recovered to beat No. 73-ranked Marcos Giron 6-7 (8), 7-6 (4), 6-3, 6-2.