Super Rally! It took Sensex just 208 days to rally from 25K to 50K

NEW DELHI: A solid 24,500-point rally on Sensex in just 208 days says it all. The 30-pack index at last broke the 50,000 level on Thursday, riding on hopes of the economy recovering from the pandemic blow and huge dollars flowing into domestic equities. To many, the level was unimaginable in late March 2019 when the Covid spike had threatened shutting down or curtailing stock exchange activities globally.

At a record high of 50,126.73, the BSE benchmark was up 95 per cent over its 52-week low of 25,639 it hit on March 24, 2020.

Data suggests it was the fastest 10,000-point milestone addition on Sensex ever. It was roughly 415 trading days ago when the index hit 40,000-mark for the first time in an intraday trade on May 23, 2019. If you go by value investor Vijay Kedia, the 1,00,000 level is coming in the next one decade.

(Source: BSE)

The 50,000-level is just a journey, and not a destination, he said.

Market vateran Madhu Kela said the market is not yet done at 50,000. Kela said one must always remain optimistic on India and have faith in India's story.

"There will be years where we are down 20-30 per cent, but don't give up faith on India's story," he told ET NOW.

It took a little over four years for the index to travel from 30,000 (for the first time) to 40,000 (for the first time). The index hit the 30,000 level first on March 4, 2015.

The index claimed the 20,000 level way back in 2007 on October, 29, 2007. That time it took some 22 months to move from 10,000 level on February 7, 2006, to 20,000 level on December 11, 2007. Needless to say, the first 10,000 points on Sensex took decades to come by.

Data showed returns from Sensex since its inception in 1979 has been a solid 15.4 per cent compounded annually, which is against 10 per cent for Hang Seng's 9 per cent for S&P 500 index 8.9 per cent for Dow Jones and 3.7 per cent for Nikkei.

Manish Gunwani, CIO-Equity Investments at Nippon India Mutual Fund said while at one level 50,000 is just a number, the fact that it has come so much fast is a testimony to the remarkable resilience and massive potential that the Indian economy presents.

"As long as the economy delivers high nominal GDP growth equities will compound and investors should benefit from this by taking a long term view ," he said.

“Sensex touching 50,000 in 2021 is like Indian cricket team winning test series in Australia against all odds of Covid 19. While economic data is about the past, which is improving month on month, Sensex is reflecting the positivity about the future," said
Nilesh Shah, Group President & MD, Kotak AMC.