Sensex @60K: Investor wealth zooms 158% since March 2020 lows

Market cap of BSE-listed firms crossed the Rs 263 lakh crore mark for the first time after Sensex scaled the historic 60,000 mark in early trade today.

Investor wealth rose to Rs 263.13 lakh crore today against previous close of Rs 261.74 lakh crore.

The rally in investor wealth came after Sensex touched all-time high of 60,333 amid mixed global cues. Nifty rose to a record peak of 17,947.

Investor wealth has surged by a record Rs 161.27 lakh crore or 158.32% since historic lows of March 2020.

On March 23, 2020, market cap of BSE-listed firms fell to Rs 101.86 lakh crore.

Sensex and Nifty logged their highest losses (pointwise) ever in the same session after central government imposed a nationwide lockdown to contain the rising cases of coronavirus.

Also read: Bull Run on D-Street! Sensex hits 60k, Nifty above 17,900; Infosys, HCL Tech top gainers

While Sensex lost 3,934 points to 25,981, Nifty closed 1,135 points lower at 7,610.

Sensex has gained 34,352 points or 132.21% since March 23 last year. Similarly, Nifty has clocked a record rise of 135.83% or 10,337 points during the same period.

The 30-stock index zoomed 448 points to an all-time high of 60,333 today against previous close of 59,885. Nifty gained 125 points to a record peak of 17,947 today.

The benchmark indices have rallied over 60% each in one year on relief measures by the government for the Covid-19 affected economy. Of late, the rally has intensified defying global weak global cues as the Indian economy is looking up, Covid -19 cases are falling and rate of vaccination picks pace.

Sensex has gained 64.90% or 23,717 points and Nifty has risen 65.68% or 7,098 points in one year.

The current market rally has surprised analysts with many of them saying the momentum is likely to continue in the future.

Santosh Meena, Head of Research at Swastika Investmart said, "We are in a classic bull market like the 2003-2007 phase where this bull run is likely to continue for the next 2-3 years. However, I will put the word of caution after a parabolic move in last few days because short-term correction can't be ruled out in coming days. Global indices like Dow Jones and Dax are near to their critical resistance and may witness a correction.

We are in a strong uptrend and outperforming global markets while some mean reversion can be seen in the coming days where rising crude oil prices and surge in US bond yield could cause near-term volatility."

Motilal Oswal, Managing Director & CEO, Motilal Oswal Financial Services said, "Amid the buoyant sentiment and increased activity, valuations have reached elevated levels and demand consistent delivery on earnings expectations.

Given rich valuations, one cannot ignore intermittent volatility. However, we expect the positive momentum to continue on the back of improving economic activity and recovery in corporate earnings."