Sensex

1. Sensex
crosses 50k
again, and
stays above it
Dated 4th February, 2021 in Hindustan Times

2. Sensex closed above 50,000 points for the First Time as
it gained over 8% in just three days post budget.

3. • On 1st February 2021, Bombay Stock Exchange gained
5% to close at 48,601 and National Stock Exchange rose by
4.7% to close at 14,281.
• IndusInd bank, ICICI bank, Bajaj finsev, SBI, L&T and
HDFC were some of the top gainers, rising as much as
15.16 percent.
• While Dr Reddy, HUL and Tech mahindra were only
losers falling upto 3.62 percent.
• This was the fourth time since 2011 that the market have
closed in positive territory post budget session.

5. As Finance Minister Nirmala Sitharaman announced
Union Budget 21-22 that was seen as growth oriented and
balanced, Indian market rose high on 1st February.
This was considered as the best performance by the stock
market on a budget day since the year 1999.

6. • Along with Indian market, the global markets have also
reacted to the budget session.
• China, Japan, Hong Kong and South Korean markets
rose around 1%.
• Corona vaccine also contributed to the rise of the
markets globally.
• Since November 2020, the global markets have shown
upward movement after economic slowdown caused by
the pandemic.

7. History :
Rise of Sensex from 999 to 50,000 points
in 3 decades.

8. • The BSE sensex started with 124.15 points on 3rd
April, 1979.
• In this decade, there was not much fluctuation in the
market.
• In the decade of 1990s, Liberal budget and Harshad
Mehta scam caused rapid changes in the market.
• On 7th February, 2007, the sensex crossed 10,000
points after the boom in technology sector.

9. • On 11th December, 2007, the sensex crossed 20,000
points; after which there was Global Financial Crisis in
the year 2008-09.
• The markets crashed by over 50%, which was seen as
biggest fall since the year 1992.
• The Lok Sabha elections in 2009 and 2014 gave
upward movement to the market.
• On 26th April, 2017, the Dalal Street crossed 30,000
points.

10. • Thereon, Implemention of GST in 2017 and Lok
Sabha elections in 2019 gave rise to the market.
• The market crashed in March 2020 as National
lockdown was announced due to pandemic.
• On 8th October, 2020, the Dalal Street crossed
40,000 points in hope of corona vaccine.
• On 3rd February, 2021, the market crossed 50,000
post budget session.

11. What's Next
• The significance of the Sensex breaching 50K
• Does this mean the market will continue to rise?
• For the next six months

12. What impacted Sensex to reach 50,000
• Strong domestic rally
• Positive corporate earnings
• FII flows
• Global equities at record high
• Reliance-Future deal approval

13. How the budget affects the stock market?
• Increase in exemption limit for taxpayers and its impact
• Change in corporate tax and its impact
• Stance on LTCG and its effect in the stock market
• Taxation on Buyback of Shares
• Sector-wise hit and their impact on the stock market
Budget 2021
• privatization of two nationalized banks
• increasing its spending on Infrastructure
• boost the construction sector

14. How Budget altered these horizon
• ITC
• INFOSYS
• NESTLE INDIA
• ONGC
• ASIAN PAINTS
• AXIS BANK

15. Health Care sector
• Pradhan Mantri Atma Nirbhar Swasthya Bharat Yojana
• FY22 outlay (budget estimate) for health
• Aatmanirbhar Swastha Bharat
• Mission Poshan 2.0

16. Covid impact

17. COVID IMPACT ON DIFFERENT
SECTORS
• Aviation and Tourism
• Restaurant services
• Raw materials and Electronic parts
• Pharmaceutical Industry
• Auto Sector
• Textiles Industry

18. Economic effects of the stock market
• Wealth effect
• Effect on pensions
• Consumer Confidence
• Investment
• Bond market

19. THANK YOU