Market boom in 7 months
There was a phase of market fluctuations throughout the year. It also happened on March 24 that the market took a terrible dive and the Sensex fell to 25,638.9. However, on the last business day of the year i.e. 31st December 2020, it closed at the level of 47,896.97. Speaking of monthly growth throughout the year, the Sensex closed at the end of 7 months. So, there were months when this index closed at the red flag.
The market was down 23 percent in MarchThe month of March 2020 proved to be extremely dangerous for Dalal Street. The market fell 8,828.8 points, or 23 per cent, on strong sales this month. In fact, news of the corona outbreak came from all over the world at that time and investors were disappointed by the weak state of the economy.
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Investors received Rs 32.49 lakh crore
For the full year, the market capitalization of all BSE-listed companies increased by Rs 32,49,689.56 crore to Rs 1,88,03,518.60 crore. Reliance Industries Limited (RIL) is the most valuable company in the country. RIL has a market cap of Rs 12,58,157.10 crore. In second place is TCS with a market cap of Rs 10.7777 lakh crore. Similarly, HDFC Bank is at the third position with Rs.91 lakh crore, Hindustan Unilever Limited (HUL) at the fourth position and Infosys at the fifth position. Infosys has a market cap of Rs 5.34 lakh crore.
The Nifty also saw ups and downs in the 50s
The Nifty fell by 40 per cent in January-March. However, it has also increased by 86 per cent in the coming months. The global market has been flooded with liquidity as governments around the world have announced stimulus packages and received financial support from central banks. India is one of the few countries to receive foreign investment at this record level.
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However, why was the market so fast this year?
Market experts say the impact of strong sales in March ended in a few months. Since then, the market has steadily reached new heights. Expectations of economic growth and good results from companies have destroyed the market. There are many reasons for such a huge boom in the Indian stock market. India will still be the fastest growing economy. There are unprecedented opportunities for growth and development. This will attract not only domestic but also foreign investors.