- Sensex has nearly doubled from its March lows
- The measure has logged 11 straight weeks of gains after touching successive new highs.
Indian stock market benchmark BSE Sensex index today climbed above 50,000 points for the first time as the gauge extended its longest weekly winning streak in over a decade. The index was up over 250 points at 50,048, logging 11 straight weeks of gains. Sensex has nearly doubled from its March lows of 25,638.
“It is a momentous day for India’s capital markets as the Sensex touched 50,000 on Jan 21. The gain of last 5,000 points has come in just 32 trading sessions. Expectations of turnaround in the economy post Covid vaccinations and continued FPI inflows have led to this kind of gains for Indian markets in a globally low interest scenario,” said Deepak Jasani, head of retail research at HDFC Securities.Post the Forthcoming Union Budget we may witness a temporary brake to the uptrend and further upmoves from hereon will depend on the pace of economic and corporate earnings growth and the trajectory of inflation and interest rates in India and the world,” he added.The rise in the index has been fueled by foreign buying, with overseas investors pouring $2.6 billion into Indian equities in January after record net purchases last quarter. Prospects of a bounce back in earnings after the economy reopened following coronavirus-triggered lockdowns have spurred investor confidence.