Sensex crosses 50k mark before closing lower by 167.36 points - GulfToday

Sensex crosses 50k mark before closing lower by 167.36 points


Bombay Stock Exchange employees inside the office premises on Thursday. Reuters

Positive global cues and expectations of healthy quarterly results, along with that of a supportive Union Budget FY22, powered the ascent of India’s barometer index -- the S&P BSE Sensex -- to cross the 50,000 mark on Thursday.

However, the barometer index dipped below the psychologically important mark due to profit booking at the end of the day’s trade.

The Sensex closed at 49,624.76, lower by 167.36 points, or 0.34 per cent, from its previous close of 49,792.12.

It opened at 50,162.05 and touched a fresh all-time high of 50,184.01 points.

The Nifty50 on the National Stock Exchange (NSE) also touched a new record high of 14,753.55 points. It ended the day’s trade at 14,590.35, lower by 54.35 points, or 0.37 per cent, from its previous close.

Earlier in the day, Sensex crossed the 50,000-mark.

Coming a day after Joe Biden’s inauguration as US President, the BSE Sensex mirrored its Asian counterparts in having a gap-up opening.

In fact, the positivity sentiment led it to open above the 50,000-mark.

The gains of the last 5,000 points in Sensex has come in just 32 trading sessions.

Moreover, expectations of an even faster economic recovery on the back of the vaccination programme have been cited as other factors for the up-move.

Besides, easy liquidity conditions across the global have been funnelling into India’s market, as FIIs shore up their stakes and pump-up this rally.

Shares ended lower on Thursday as some investors locked in profits after major indexes hit record highs, with the benchmark Sensex surpassing the 50,000 level for the first time.

The blue-chip NSE Nifty 50 index fell 0.37 per cent to 14,590.35, while the S&P BSE Sensex closed down 0.34 per cent at 49,624.76 after touching a record high of 50,184.01 earlier in the session.

Many analysts had flagged the risk of correction owing to stretched valuations of some stocks and the Nifty and Sensex scaling new peaks over the past few weeks.

“It is an expiry day (for weekly derivatives) and we are seeing some profit-booking at these levels... Sensex has hit the 50,000 level. People are just cautious right now,” said Rahul Sharma, market strategist and head of research at Equity99 markets.

Traders and analysts have been betting on economic recovery and improved earnings from companies after India emerged from a months-long lockdown. Foreign investors pumped in more than $20 billion last year and had bought $2.76 billion worth of Indian equities as of Jan. 20.

Global equity benchmarks hit record highs on Thursday, as investors bet major stimulus from new US President Joe Biden.

Reliance Industries shares rose 2.5 per cent after Indian stock exchanges gave the go-ahead for a $3.4 billion deal with Future Group.

Shares in Future Group companies jumped 5 per cent on Thursday after the stock exchanges’ nod.

Tata Motors shares rose 5.7 per cent, gaining for a third straight day. The carmaker’s stock, which has risen 60 per cent so far in 2021, is the best performing one on the blue-chip Nifty 50.


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