Investor wealth increases a giant 32.49 lakh cr in the affected pandemic in 2020

The outbreak of Covid-19 devastated lives and livelihoods on a global scale, blocking business and shaking global action.

But against the backdrop of the darkness, Indian stock indices have given hope of a return to earnings by the end of the year.

Sensex gained 15.7% in a memorable year 2020, in which the BSE benchmark recorded both relentless sales and massive purchases.

The markets witnessed volatile trends during the year, with a reference level collapsing to a one-year low of 25,638.9 on March 24, to return to a record high of 47,896.97 on the last trading day.

Throughout the year, Sensex’s 30-share BSE Sensex recorded monthly gains in seven, while it closed with losses in five of them.

March proved to be awful for Dalal Street, with Sensex down 8,828.8 points or 23% during the month due to concerns about the impact of the coronavirus pandemic on the economy.

It was a volatile last trading day for the market, with a BSE benchmark rising 5.11 points to reach its new closing record of 47,751.33.

For the entire year, the market capitalization of companies listed on BVB increased 32,49,689,56 million to reach 1.88.03.518,60 million.

“The effect of the March collapse was completely canceled in the months that followed, and markets grew much more to reach peak levels.

“While expectations of a return to economic growth and a resurgence of corporate revenues inspire unusual optimism in the markets, the fact that India will continue to be one of the fastest growing economies in the world, with a broad consumer market and an extraordinary potential for growth and development, it gives greater confidence not only to domestic investors but also to foreign investors, “said Joseph Thomas, head of research, Emkay Wealth Management.

“This is the single factor that would keep markets moving, but we need to be cautious about the pandemic, pay attention to its effective limitation in crucial geographies such as the US and the EU, and also rely on the implications of rising inflation and of rising oil prices in our interest rate expectations, “he added.

A number of initial board bids during the year, many of which received massive subscriptions, including Burger King India and Mrs Bectors Food Specialties, added to the market’s optimism.

“2020 has proved to be one of the most unpredictable years for everyone. Stock markets around the world have gone through a roller coaster ride this calendar year.

“Nifty-50 fell 40% between January and March and then rose 86% from March lows. Unprecedented fiscal and monetary support from governments and central banks led to massive influx of liquidity into global markets. India is one of the few emerging markets that receives strong flows of REITs, “said Rusmik Oza, executive vice president, chief research officer at Kotak Securities.

Reliance Industries Limited remained the most valuable company in the country, with a market valuation of 12,58,157.10 million, followed by TCS ( 10.77.009.46 million), HDFC Bank ( 7,91,312.61 million), Hindustan Unilever Limited 5,62,378.04 million) and Infosys ( 5.34,940.34 crore) in the first five.

“As we enter 2021, markets are at all-time highs and show resilience in the face of abundant liquidity, positive vaccine developments and signs of economic recovery,” said Hemang Jani, chief strategy officer at Motilal. Oswal Financial Services (Intermediation and distribution).

Vinod Nair, head of research at Geojit Financial Services, said: “Despite the ravages of the COVID-19 pandemic, the economy is expected to recover in 2021, boosting stock markets as well as improving corporate earnings.”

This story was published from an agency stream with no text changes.

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