August 3, 2021 03:31 PM
MUMBAI: Domestic stock market indices are bullish today. The National Stock Exchange (NSE) index has made history by crossing the key 16,000 mark. The Bombay Stock Exchange (BSE) is also moving at highs. Positive signs such as the rapid recovery of the crippled economy, a three-month high in manufacturing activity and a 33 per cent recovery in GST collections have given confidence to investors. Shares of key companies such as HDFC, TCS, Infosys, Bharti Airtel and HUL also performed well. The Nifty gained 140 points at one stage, hitting a lifetime high of 16,025. The Sensex rose 528 points to a high of 53,478.
At 12:37 pm, the Sensex gained 508 points to close at 53,459. The Nifty gained 133 points to trade at 16,018. Majority sector stocks are moving in gains. Titan, Sun Pharma, HDFC, Bharti Airtel, IndusInd Bank and TCS are among the gainers. Bajaj Auto, NTPC, Tata Steel and ICICI Bank are among the losers.
THE NIFTY JOURNEY
The Nifty, which opened in April 1996, has recently completed 25 springs. It started trading at 1,107 with a listing of the first 13 companies. So it took 18 years to reach the 7,000 mark. From there it took 7 years to receive the 16,000 mark. Of the 50 companies currently listed on the Nifty, only 13 are from the beginning. Among them are HDFC Bank, Reliance, HDFC, HUL, L&T, Tata Motors, SBI, Dr Reddy’s Labs, Tata Steel, Grasim, Hero and Hindalco. The market value of these three is expected to grow at a rate of 18 per cent per annum. In the early days, there was an air of consumer, public sector banks, NBFC, auto, metal and textile sectors. The IT sector was not booming at the time. But, now the IT sector is the lion’s share after banking in the Nifty.
The Nifty experienced many ups and downs in the early days. From 1996-98 there was severe political instability in the country. Then there was the Asian financial crisis, the dot com bubble, the global financial crisis, and the current Covid epidemic. The Nifty, which fell to 7,600 during the first wave of the Corona, is expected to double in just 220 days.
* The Nifty collectively fell 50 percent during the 2008 global financial crisis, falling from 5,000 to 2,500. The following year, it rallied 76 percent to provide lost wealth to investors.