InvestorQ : Is it true that the Sensex gained 10,000 points in the current calendar year?
vidhya Laxmi made post

Is it true that the Sensex gained 10,000 points in the current calendar year?

sarah Leo answered.
1 year ago

When the Sensex crossed the 58,000 mark during the week, it actually completed a full 10,000 points rally since January. The Sensex was exactly at 48,000 in January this year. That is a 21.4% gain in the Sensex since the beginning of the calendar year. Most experts, at that point of time, were predicting single digit returns but the indices have clearly done better than the most optimistic of expectations.

There have been several supporting factors. For example, the foreign investors pumped Rs.50,000 crore since January while the domestic mutual funds pumped in over Rs.20,000 crore. In addition, millions of new investors have opened demat and trading accounts, mostly millennials, and all of them are contributing to the bull market rally. In the process the market capitalization of the Bombay Stock Exchange has crossed $3.4 trillion.

This massive rally in the Sensex has been largely triggered by limitless flow of liquidity. The Fed has taken its balance sheet size from $4 trillion to $8.4 trillion and in the process it has infused mountains of liquidity through the global markets. The recent trigger for Indian markets came from Jerome Powell testifying in his Jackson Hole speech that while tapering was likely to happen soon, the interest rate hikes were not under consideration.