The benchmark indices posted their highest annual gains since 2017 and ended with double-digit gains for the second year in a row. Based on strong liquidity due to lax monetary policies and the weakening US dollar, the S&P BSE Sensex and Nifty50 were up around 16% and 15%, respectively, in 2020.
In addition, Sebi’s directive on investing in multi-capitalization funds, the part in the broader indices was even more impressive. The S&P BSE500 gained 20 percent in CY20 and posted its best performance in the past three years. Additionally, the S&P BSE Midcap and S&P BSE Small-cap indices have recovered 18% and 29%, respectively, in CY20.
Despite the Covid-19-induced lockdown that paralyzed all activity for nearly three months, the stock market recovery was driven by a strong outpour of liquidity from foreign portfolio investors injecting $ 22.4 billion, or $ 1.66 trillion. rupees in shares during the year. The flows for November and December are one of the highest ever seen in Indian equities. In the past two months alone, FIIs have invested nearly Rs 1.18 trillion in Indian stocks, data shows.
Thursday session
Markets traded sideways throughout the day, moving in the range of around 300 points, and ended the final trading day of 2020 on a flat note. The S&P BSE Sensex was 5 points, or 0.01 percent, higher at 47,751 levels. The 30-share BSE barometer hit a record 47,897 earlier in the day, posting stellar gains of 87 percent from its March lows of 25,639.
NSE’s Nifty50, on the other hand, closed unchanged at 13,982. The index climbed the 14,000 mark in the intraday session and extended gains to hit a record 14,010 levels. The index is now up 86.5 percent from March lows.
Investors were comforted by Prime Minister Narendra Modi’s statement that India will begin its Covid-19 vaccination program in 2021. Meanwhile, the trial for the administration of the Covid-19 vaccine is scheduled to begin in all states to starting Saturday, January 2.
In the broader market, the S&P BSE MidCap and SmalCap indices outperformed the top-line indices, up 0.2% and 0.36%, respectively.
On the sector front, the Nifty FMCG Index finished as the main loser on the NSE, down 0.4%, while the Nifty Realty Index closed more than 1% higher.
Global markets
Asian stocks rose on Thursday and ended a tumultuous 2020 at all-time highs. The MSCI gauge for Asia Pacific equities excluding Japan rose 0.17 percent towards its latest closing peak. Asian gains were led by Chinese blue chips, which rose 1.76% on Thursday following the announcement of a trade deal with the EU overnight. Hong Kong’s benchmark index was up 0.31 percent.
However, European stocks fell on Thursday as investors squared positions on the last trading day of the year. In light trading, the UK’s FTSE 100 fell 1.5% and France’s CAC 40 fell 0.7%. Both markets will close early Thursday.
(With input from Reuters)
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