Nifty Surges 40% In Samvat 2077 On Economic Recovery, High Liquidity

The surge in equities came on the back of economic recovery, vaccine breakthroughs and containment of COVID-19 cases.

The Indian equity benchmarks sky rocketed in Samvat 2077 with the 30-share Sensex surging 38 per cent and Nifty 50 index climbing 40 per cent. Both the benchmarks touched record highs with Sensex crossing 60,000 and Nifty advancing above 18,000 for the first time. The surge in equities came on the back of economic recovery, vaccine breakthroughs, containment of COVID-19 cases and high global liquidity despite a deadly second wave of Covid-19 infections which led to lockdowns in many parts of the country.

The Sensex ended 257 points lower to close at 59,772 and Nifty 50 index declined 60 points to settle at 17,829 on Wednesday.

"With the economic cycle picking up, we expect the corporate earnings growth to revive as well. Markets have always moved in tandem with earnings growth. Although there would be ups and downs in-between, we expect the overall trend of the market to remain positive in Samvat 2078 as well," Motilal Oswal, Managing Director and CEO of Mumbai-based brokerage firm Motilal Oswal Financial Services said.

Buying was visible across the sectors in Samvat 2077 with all the sectoral indices posting tremendous returns. Nifty Realty index was top sectoral gainer with a gain of 126 per cent. Surge in Realty shares came on the back of easy liquidity conditions with banks offering home loan interest rates at all-time low levels. Nifty Metal, PSU Bank, Consumer Durables, Media and Oil & Gas indices also surged between 50-100 per cent.