Stock markets create history despite Covid-19. Here’s a look at 9 market milestones

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Domestic markets extended their historic highs with the Sensex scaling 54,000 for the very first time on August 4, 2021, right after the Nifty had scaled the 16,000 peak for the first time on August 3. Both Sensex and the Nifty were seen trading at record levels. With the Covid-hit economy showing signs of a comeback, stock markets are on a roll. Solid earnings by India Inc, ample liquidity and a conducive global mood have also fired up stocks and sectors.

Here’s a look at the key milestones in the journey of stock markets since the pandemic led lockdown in March 2020

Lockdown 1.0

Covid-19 and its impact on the stock market have hence often been referred to as a ‘Black Swan Event’ by many trading gurus around the globe. The aftermath of this unpredictable pandemic took everyone by surprise and led to disrupting the daily lives of many. As a result, stock markets across the globe took a plunge with the implementation of lockdowns to curb the spread of Covid-19.

A 21-day lockdown was declared in India on March 24 last year to check the spread of Covid-19.

The Sensex slumped to multi-year lows of 25,638.90 after the government imposed the lockdown. The Nifty50 also went on a roller-coaster ride through the year plunging to 7,511 on March 24 from 11,380 levels.

Nifty hits 14,000 

However, the subsequent re-opening ignited hopes of an economic turnaround as traders and analysts bet on economic recovery and improved corporate earnings, with India reopening its economy after a months-long lockdown.

Nifty recovered to reaching an all-time high of 14,024  on December 21, 2020. Nifty took 26 trading sessions to climb to 14,000 from 13,000 points.

From the March low of 25,639, the 30-share Sensex too climbed to an all-time high of 47,897 points.

Sensex hits 50,000

The benchmark BSE Sensex achieved a milestone on January 21, 2021, by breaching the 50,000-mark for the first time ever. The rally was led by global cues on account of the smooth transition of power in the United States after the January 6 siege of the Capitol. As President Joe Biden offered hope – promising to take all Americans along and hinting at improving relations with the rest of the world – market sentiments were lifted.

Union Budget lifts sentiment

In a historical move, benchmark indices Sensex and Nifty closed 5% higher on Feb 1, 2021, as market participants reacted positively to the announcements by finance minister Nirmala Sitharaman in Union Budget 2021. BSE benchmark index S&P Sensex ended 2,314 points higher at 48,600 and NSE Nifty 50 index gained 646 points to 14,281. This was once in a lifetime jump seen on Budget day, with Sensex and Nifty rising over 5% each.

BSE m-cap crosses historic Rs 200 lakh crore

The market capitalisation (m-cap) of BSE-listed companies on February 4, 2021, crossed the Rs 200 lakh crore mark for the first time. With the achievement, it also became the world’s ninth-largest exchange in terms of listed companies’ market capitalisation.

Nifty hits 15,000; Sensex breaches 51,000

Optimism from Union Budget 2021 and healthy foreign fund inflows have pushed the Indian share market benchmarks to fresh highs. BSE Sensex hit the crucial 51,000-mark, while the Nifty 50 index climbed to a lifetime high of 15,000 in the intraday deals on February 5, 2021.

The sprint to over 15,000 for Nifty from pandemic lows of 7,511 in March 2020 — has seen the index double in just 220 days. In fact, the move from 14,000 to 15,000 has been the quickest — covered over just 25 days.

Sensex tops 52,000

In yet another milestone, benchmark Sensex rallied over the 52,000 mark for the first time ever on February 15, 2021, propelled by gains in the broader market. The 30-share index jumped to its lifetime high of 52,141.67, rallying 597.37 points during the morning trade on February 15, 2021. This was achieved on the back of broad-based gains as strong December-quarter corporate earnings raised hopes of a quick economic recovery.

Vaccination drive takes Sensex past 53,000

The BSE Sensex hit the 53,000 mark for the first time ever on June 22, 2021 as investors bet on a faster recovery of the economy on increasing vaccination coverage and fall in coronavirus cases. Oil and gas stocks led the rise in the market. BofA Global Research raised its Brent crude price forecasts for this year and next, saying that tighter oil supply and demand balances in 2022 could push oil briefly to $100 per barrel.

Nifty scales 16,000; Sensex climbs 54,000

Nifty50 surpassed 16,000 for the first time on August 3, 2021 which translates into an upside of over 14% so far in 2021. The index completed its 1,000-point journey in about 6 months or 179 days

The journey from 15,000 to 16,000 has comparatively been slower owing to the second wave of Covid-19 which started in March 2021. The FIIs also pulled out majorly in the last six months which led to some lack of momentum in the markets and restricted the index to hold at higher levels,

For the past two months, Nifty had been consolidating within a very tight range of 15,450-15,950 and even attempted to scale 16,000 five times but failed due to heavy selling pressure.

A day after Nifty50 scaled 16,000 the S&P BSE Sensex created history, topping the crucial psychological level of 54,000 on August 4, 2021 to hit a fresh record high of 54,440. It took the S&P BSE Sensex about 30 sessions to rise from 53,000 to 54,000.

The market was welcoming the sequential recovery of key high-frequency indicators like manufacturing PMI, the GST collection and the Google mobility data, all are trending higher on a month-on-month basis