The BSE benchmark index, S&P BSE Sensex, crossed the 50,000-mark for the time on Thursday on the back of stronger-than-expected corporate earnings, hopes of bold economic reforms in the upcoming budget amid sustained foreign inflows in equity markets. Foreign investors pumped more than $20 billion into Indian equities in December alone. In calendar year 2020, FIIs bought Indian shares worth Rs 1.70 lakh crore, data from National Securities Depository Limited showed.
Here is the Sensex’s journey to 50,000:
— BSE India (@BSEIndia) January 21, 2021
In the year 1990, Sensex crossed 1,000 mark and on Thursday it moved above 50,000 for the first time. The Sensex’s journey to record high has not been a one-way street – the BSE benchmark has seen scams by Harshad Mehta, Ketan Parekh and Satyam scam and at the same time, been a witness to India’s economic reforms.
More recently, in March last year, the Sensex slumped to multi-year lows of 25,638.90 after the government a imposed a lockdown to curb the spread of coronavirus. However, the subsequent re-opening ignited hopes of economic turnaround as traders and analysts bet on economic recovery and improved corporate earnings, with India reopening its economy after a months-long lockdown.
“Sustained foreign inflows along with better-than-expected earnings and hopes of strong economic reforms from the upcoming Budget are supporting the upmove in the Sensex,” AK Prabhakar, head of research at IDBI Capital told NDTV.