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Yayyyy!!! Nifty Hits Record High, Why?
Last Updated: 13th December 2022 - 05:32 pm
The bulls have won the race and have taken charge of Indian markets, pushing the Nifty50 to record highs on May 28 even as the market cap of BSE-listed companies has gone past $3 trillion for the first time.
The Nifty touched a record high of 15,469.65 on May 28 and has rallied more than 10 percent in 2021. The rise in market has been led by gains in Sun Pharma, Divi’s Laboratories, SBI Life, IOC, Asian Paints, Wipro, Tata Steel, and JSW Steel, which are up 10-60% since February 16 when the index hit the previous high of 15,431.
Here, we have discussed 5 factors that supported the market performance:
Fall in Covid19 cases:
The Union government on Thursday said that India is now seeing a stabilisation of the second wave of the pandemic as the active cases and the test positivity rate is witnessing a declining trend after peaking in early May. India recorded 186,364 new covid19 in the last 24 hours’ taking the country’s total to 2,755,5457 cases according to union health ministry data on Friday. This is the lowest daily covid19 number since April 14, as infections continue to decrease in the country.
Rapid Recovery in Vaccination:
According to the health ministry statement, a total of 20,04,94,991 vaccine doses have been administered, as per the provisional report till morning of 25th May 2021. As per the media reports, the supply of Covid-19 vaccines is likely to increase gradually from June, helping India get close to 300 crore doses in the seven-months period ending December.
GST Council Meet:
The GST Council is likely to discuss on Friday a reduction in the tax rate on Covid medicines, vaccines and medical equipment as well as means to make up for the shortfall in revenues promised to states. Thus, this may have improved investors sentiments.
Healthy Quarterly Results:
Most of the Indian corporates usually registered growth or improved top-line or bottom-line numbers in the March quarter of the year 2021 despite Covid19 challenges. Improving consumer sentiments, easing lockdown restrictions, favorable Government policies, fall in Covid19 cases and rapid vaccination process supported the financial performance of the companies.
US Job Data:
The procession of Americans heading to the unemployment line fell last week, with jobless claims totaling a fresh pandemic-era low of 444,000, the Labour Department reported Thursday. Economist surveyed by Dow Jones had been expecting 452,000 new claims as the jobs picture improves thanks to an accelerated economic reopening across the country. The total represented a decline from the previous week’s 478,000.
Stock Performance Nifty 500
5 stocks in the Nifty 500 list have given more than 100% returns between the period February 16,2021- May 27, 2021, more than 38 stocks have given more than 50% return. Recently, the market cap of BSE-listed companies surpassed the $3 trillion- mark, making the Indian market the eighth largest in the world.
Disclaimer: The above report is compiled from information available on the public platforms. These are not buy or sell recommendations.
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