The Sensex is the benchmark index of the Bombay Stock Exchange (BSE) and is one of the most popular measures of the Indian equity market’s performance. The index comprises the top 30 companies listed on the BSE and reflects the overall state of the Indian economy. In recent times, the Sensex has been on a rollercoaster ride with unprecedented volatility and a series of ups and downs. However, the recent news of Sensex ending its five-day losing streak and rising by 78 points has brought a sigh of relief among investors.
The Indian stock market has witnessed significant fluctuations in recent months due to the impact of the COVID-19 pandemic. The Sensex’s historic low of 25,638 was recorded in March 2020 when the global outbreak was at its peak. However, the market has shown remarkable resilience and recovered quickly. The Sensex reached an all-time high of 52,516 in February 2021, showcasing India’s economic resilience.
However, the past few weeks have been tumultuous, with the Sensex experiencing a five-day losing streak, which ended on 16th July. The Sensex dropped by nearly 1500 points during this period due to global uncertainty and concerns about the Delta variant spreading globally. The ongoing farmer protests, the rising unemployment rate, and inflation have also contributed to the Sensex’s volatility.
The Sensex’s recent gain of 78 points is a positive development as it brings renewed hope to investors who have been worried about the market’s recent slump. Experts have attributed the improvement to a broader recovery in the global stock markets and renewed optimism in India’s economic recovery. The Reserve Bank of India’s (RBI) continued accommodative stance has also boosted investor sentiment.
The RBI has maintained a policy of fiscal stimulus to aid India’s economic recovery. This policy includes a low-interest rate regime, accommodative liquidity conditions, and a slew of measures to support financial institutions. The central bank has also been proactive in proposing new policies to help support the Indian economy’s growth. For instance, the RBI proposed a four-layered regulatory framework for non-banking financial companies in July 2021 to help promote stability and transparency in the sector.
According to market experts, the Sensex’s recent surge could be the start of a renewed rally. The BSE Sensex is expected to touch 58,000 by December 2021, according to a recent poll conducted by ANI. This is largely due to the positive indications of a robust economic revival for India. The country’s growth rate is expected to bounce back, powered by the government’s focus on economic reforms and infrastructure spending. Additionally, sectors like information technology, pharmaceuticals, and commodities are all set to perform well in the near future.
Investors and traders understand the importance of keeping track of key market indicators like the Sensex. When it comes to investing, being aware of the Sensex’s performance can help investors make informed decisions. Investors can track the Sensex by monitoring a variety of sources, including financial newspapers, online financial news portals, and news channels. Investors can evaluate market trends and conditions by analyzing the Sensex and other stock indices’ historical trends. Additionally, investors must understand that stock market investments are subject to market risk and should always conduct thorough investment research before investing their hard-earned money.
To conclude, the Sensex’s recent gain of 78 points is a positive development for the Indian stock market. The improvement has brought renewed optimism to investors, and experts predict a renewed rally in the near future. As India continues to recover from the COVID-19 pandemic, the Sensex’s performance will be closely watched. Investors should continue to monitor the Sensex to make informed decisions and understand the stock market’s performance in India.