InvestorQ : What is the significance of the Sensex giving a close above the 50,000 level?
Rashi Mehra made post

What is the significance of the Sensex giving a close above the 50,000 level?

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diksha shah answered.
4 weeks ago
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Any psychological level is a significant level especially when the index gives a close above that. Of course, sustenance is an issue but we will come to that later. Remember that after making two abortive attempts to close above the 50,000 mark, the Sensex on 03 February managed to give a close above the 50,000 mark. It did take a lot of effort.

Significantly, the Nifty also closed above the 14,750 mark for the first time in its history. The rally on Wednesday was largely triggered by financials and pharmaceutical stocks. On the one hand, the financials cheered aggressive plans like creation of a Bad Bank and privatizing PSBs. Pharma companies cheered a sharp 137% increase in the healthcare budget.

What really stood out on Wednesday was that the Sensex breaching 50,000 came with a lot of FPI support. The FPIs are no longer tentative or unsure about whether to invest. Budget appears to have convinced them that the government does mean business. The markets will now await the next big trigger when RBI announces its monetary policy.

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