Investor wealth more than doubles from March lows as Sensex logs a 98% rally

Market wealth on BSE has risen more than 100% in less than a year after Sensex and Nifty staged a robust comeback from the four-year lows they hit in March-end.  Investor wealth rose to Rs 204.15 lakh crore in today's session after Sensex and Nifty closed at fresh record highs.

The strong rally in benchmark indices has added Rs 102.29 lakh crore in investor wealth on BSE  since March 23, 2020.

On March 23, BSE market cap fell to Rs 101.86 lakh crore after rising number of cases in India and the resultant lockdown in a majority of states took a heavy toll on the financial markets.

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

During the session, Sensex hit an intraday low of 25,880 and Nifty fell to 7,583.

Since then, Sensex has rallied 25,550 points or 98.34%. Nifty too has gained 7,563 points or 99.38% since March 23. In 2021 alone, Sensex and Nifty have clocked huge gain of 3,780 points (7.92%)  and 1,191 points (8.52%).

The recent rally in equity market was sparked by the Union Budget on February 1 which was aimed at bringing the Covid-19 hit economy back to the growth path.

On January 29, Sensex ended 588.59 points lower at 46,285. Similarly, Nifty closed 182.95 points lower at 13,634. The markets came under selling pressure ahead of the Union Budget next week.

Since then, Sensex has rallied 5,246 points and Nifty has added 1,539 points in the strongest post Budget rally investors has witnessed ever.

Meanwhile, Sensex surged 222 points to end at its new closing record today, propelled by gains in index major Reliance Industries amid positive global cues.

Share Market Highlights: Sensex jumps 222 points to end at record high, Nifty at 15,173; metal stocks lead

Sensex settled 222.13 points or 0.43 per cent higher at 51,531 today. Nifty too advanced 66.80 points or 0.44 per cent to its all-time high of 15,173.

On Sensex, Reliance Industries was the top gainer rallying over 4 per cent, followed by Sun Pharma, PowerGrid, Bajaj Finance, Nestle India and HCL Tech. On the other hand, Titan, L&T, ONGC, HDFC Bank and ITC were among the laggards.

In today's session, market breadth was positive with 1,682 stocks closing higher against 1,314 stocks ending lower on BSE. 130 stocks were unchanged.

Number of shares rising to their 52-week highs stood at 267 against 33 touching their 52-week lows. 311 stocks hit their upper circuits against 205 falling to their lower circuits, respectively.

Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities said, "Based on the market closing, we can conclude that the market is consolidating and would remain volatile between the 15200/51700 and 15000/51100 levels until the market closes at the 15200/51700 level. The Nifty would move above the 15200/51700 level to 15350/52200.However, in the absence of Bank-Nifty performance, the market will need strong support from FMCG or IT sectors with consolidation and large support available."

Ruchit Jain, Senior Analyst, Technical and Derivatives at Angel Broking said, "The immediate supports for Nifty are placed around 15,100 followed by 14,975 whereas resistance is seen around the swing high of 15,250 above which Nifty should resume momentum.

Although the indices have not moved much during this week, the stock specific action has been buzzing and has provided opportunities for trading. Till the index is locked in this range, traders are advised to look for potential stock specific movers and trade with proper risk management."