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Sensex recovers 95% to hit 50,000; mid-cap and small cap stocks shine

This ride to extremes was driven by strong global cues, gush of liquidity in the markets and increased investor participation. Around 12 million new investor demat accounts were opened in the year 2020, the highest in at least 5 years

twitter-logoNiti Kiran | January 21, 2021 | Updated 14:10 IST
Sensex recovers 95% to hit 50,000; mid-cap and small cap stocks shine
Foreign institutional investors have pumped in Rs 20,236 crore in equities in January so far

The market barometer finally crossed the 50,000-point psychological mark in the opening session today. The 30-scrip blue chip index made a brilliant comeback, rising over 95 per cent from its March lows. However, its mid-cap and small cap counterparts were over the hump rising over 100 per cent since then. This ride to the extremes was driven by strong global cues, gush of liquidity in the markets and increased investor participation. Around 12 million new investor demat accounts were opened in the year 2020, the highest in at least 5 years.   

Meanwhile, foreign institutional investors have pumped in Rs 20,236 crore in equities in January so far and have infused over Rs 1.5 lakh crore into the markets since it hit multi-year low in March last year.

Also read: Sensex at 50,000: What happens next?

At 50,000, Sensex managed to recoup over 95% of losses since March. Mid-cap and small cap indexes have witnessed 100 per cent gain

Over 12 million new investor demat accounts were opened in 2020. That's more than double the average of past three years

According to V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, "The smooth transition in the US and President Biden's healing speech lifted the US markets to record highs. This feel-good factor is likely to spread to other markets too. Sensex @50,000 is going to be a reality. FII inflows, which had declined a bit during the last few days, have again turned strong going above Rs 2,200 crore yesterday. Apart from robust FII inflows, another major factor supporting the rally is the impressive corporate results, which started in Q2 and continue in Q3. While enjoying this bull run, investors should not be carried away by the euphoria. At high levels, markets are vulnerable to corrections."

Also read:Sensex hits 50,000: A roller coaster ride of 9,000% in 34 years

Also read:Sensex glows more than gold

Also read:Sensex's Six-Ratans

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