History created: Sensex breaches 50,000-mark for the first time ever
In a development that is sure to make investors, market watchers, and companies happy, S&P BSE Sensex crossed the 50,000-mark for the first time ever on Thursday. The S&P BSE Sensex added 280 points taking the level to 50,079.28 while the Nifty 50 index traded above the 14,700-mark at 14,728.70. From 549.43 on January 2, 1986, the Sensex touched the historic 50,000-mark today.
In the last session, the S&P BSE Sensex gained 393.83 points (or 0.80%) to close at 49,792.12, a fresh record. The Nifty 50 index jumped 123.55 points (0.85%) and closed at a lifetime high of 14,644.70.
To note, the S&P BSE Sensex traded above the 48,000-mark for the first time ever on January 4. That day, the Nifty 50 index had crossed the 14,000-mark. It was in 1990 that Sensex had breached the 1,000-mark. Among the top gainers today were Bajaj twins, HCL Tech, Titan, Tech Mahindra, RIL, Kotak Bank while Nestle, HDFC, TCS, HDFC Bank were the top losers.
As per Business Standard, Reliance Industries traded 1% above when markets opened. This was driven by the green signal given by the Securities and Exchange Board of India (SEBI) to Future Group's "scheme of arrangement and sale of assets" to the company. The deal is reportedly worth Rs. 24,713 crore. The BSE had also given its "no adverse observation" report.
Joseph Thomas, Head Of Research at Emkay Wealth Management, said coronavirus vaccines and the change in leadership in the United States could have been the reasons for the surge. "As the Sensex crosses the 50K, the valuations do look stretched. The valuations are a function of earnings and earnings not coming through remains the key risk at the current juncture," he added.
Separately, Gaurav Dua, Head Capital Market Strategy and Investments, Sharekhan by BNP Paribas, opined that a new dawn is here. "The pillars of the long term equity rally are in place, i.e., low-interest rates, bank balance sheets on a mend, significant policy reforms along with the recent focus on attracting foreign investments and developing the Indian manufacturing sector," he told LiveMint.
On a related note, Asian markets also rose amid renewed hopes that new US President Joe Biden will take steps to fix the battered economy. Japan's Nikkei 225 registered a rise of 0.7% while South Korea's Kospi rose by 0.4%. Shanghai Composite swelled by 0.4% and Australia's S&P/ASX 200 gained at least 0.6%. Hong Kong's Hang Seng witnessed an uptick of 0.17%.