Reasons for 50000 Milestone of Sensex
On January 21, S&P BSE Sensex crossed the 50,000 mark milestone for the first time. It took 34 years to reach this big milestone.
- Various factors can be considered contributors to this milestone, some of them are-
- One reason can be the boost from the Global equity benchmarks after Joe Biden became the US President. Investors are expecting a new stimulus from Biden.
- Reliance was also a big contributor to achieving this milestone. This was because SEBI approved the Reliance-Future deal for acquiring Future’s retail assets worth Rs 24,713 crore. After this, shares of Reliance were trading 3% higher.
- Domestic stocks were performing better with some stocks from the financial, banking, and IT domain performing more than the expectations daily.
- Indian shares got a boost during the Q3 earnings season. Many companies have positive earnings and their valuations also increased. As these companies are expected to perform better, they gave a boost to the stock market.
- One other reason can be the expectations from Union Budget 2021. However, RBI has warned about these over-optimistic expectations because if they are not fulfilled, it can affect the stock market.
Other than this, the COVID-19 vaccination drive may also be a reason to infuse confidence in the investors.