The BSE Sensex on Thursday breached the 50,000-mark for the first time during the early trade.
The Sensex surged 334.61 points (0.67 per cent) to register a record high of 50,126.73, while the Nifty 50 too climbed 93.60 points (0.64 per cent) to touch a new lifetime high of 14,738.30.
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Reliance Industries RIL, Bajaj Finserv, Bajaj Finance, ICICI Bank and Axis Bank were the leading companies that have helped the Sensex to cross the 50,000 mark during the early trade.
On Wednesday, the Sensex had rallied 393.8 points, or 0.8 per cent, to close at 49,792.12. The Nifty 50 rallied by 123.85 points, or 0.85 per cent, to close at 14,644.7.
Among the sectoral indices on the National Stock Exchange (NSE), the Nifty Auto index was also trading over 1 per cent higher on Thursday because of the gains in the shares of Tata Motors, Eicher Motors and Bajaj Auto.
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The key Bank Nifty too gained around 0.5 per cent led by RBL Bank, IndusInd Bank and Bandhan Bank.
“The liquidity expansion by the central bank and the ample FII driven liquidity, a V-shaped recovery of growth aided by the discovery of Covid-19 vaccine and the change in US leadership has propelled markets to a higher level,” a report quoted the head of research at the Emkay Wealth Management, Joseph Thomas as saying.
As the sensex crosses the 50,000, the valuations do look stretched. The valuations are a function of earnings and earnings not coming through remains the key risk at the current juncture,” Thomas said.
The S&P BSE MidCap index rallied over 0.5 per cent at 19,268.97, while the S&P BSE SmallCap traded at 18,837.02, up 0.50 per cent at around 10:00 am.
Nilesh Shah, managing director of Kotak Mahindra Asset Management Company said that the Sensex touching 50,000 in 2021 is like the Indian cricket team winning test series in Australia amidst the Covid-19 pandemic.
“This record rise in the Sensex reflects a positive future for the Indian economy,” Shah said.