Nifty50 Touches A Record High; From 7511 To 19000 Here Is The Detailed Journey

Today India’s benchmark Nifty50 achieved a significant milestone of 19,000 mark. This remarkable feat is an extension of a four-month rally starting from March, which can be attributed to factors such as robust domestic growth, subdued inflation, positive corporate earnings, and substantial foreign inflows.

The Indian stock markets have consistently outperformed global markets. It has exhibited strong performance and surpassed its global counterparts in terms of returns and growth. Irrespective of the global challenges Indian markets performed better this year.

If you remember, a few years ago, during the pandemic the Indian stock markets faced extreme volatility. Investors were gripped by uncertainty and panic, leading to substantial sell-offs and plunging stock prices.

The Nifty50 index was hovering around the 12,000 mark prior to the onset of the COVID-19 pandemic. During the market downturn, it reached a significant low of 7,511 on March 24, 2020. However, it gradually exhibited signs of recovery and started rebounding from this point. It took only 230 days to cross the pre-pandemic levels from the low of 7511.

On November 9, 2020, within 294 days the index surpassed its pre-pandemic highs, marking a new milestone. From thereon, it continued to skyrocket with a robust bullish trend, eventually reaching a new peak of 15,431 on February 16, 2021. Once again, it surpassed this significant level on May 28, 2023, extending its upward trajectory.

Following a consolidation phase lasting nearly two months, the Nifty50 index initiated a rally after breaking out of its trading range on August 3, 2021. On October 19, 2021, the index achieved a significant milestone by reaching 18,604. It took only 245 days to touch this level. Subsequently, it was trading within the range of 18,604 and 15,500 for approximately one and a half years.

However, on December 1, 2022, the index surpassed this range and reached a new milestone of 18,887.60. It took almost 426 days to reach this level. Since then, it has been trading below this level, and as of June 2023, it was very close to this mark. However, it encountered resistance in surpassing this hurdle and achieving a new milestone.

Today, after 209 days the Nifty50 index has not only exceeded the previous record high of 18,887.60, which was achieved on December 1, 2022, but it is also currently trading above this level, indicating its resilience and strength. Furthermore, it has reached a milestone by touching the 19,000 mark for the first time in its history.

Following are the top five performing sectors in the past year:

Following are the top 10 performing companies in the past year:

The Nifty 50 reaching the historic milestone of the 19,000 mark can be attributed to the significant contributions of the ten specific stocks mentioned above. Additionally, when analysing the sectors that have made substantial contributions, it becomes apparent that the Banking, Fast Moving Consumer Goods, Realty, and Metals sectors have played a significant role in this achievement.

In the last three months, Nifty50 has generated a return of approximately 12% whereas in the last one year, it has generated a return of around 20%. Considering the factors of robust domestic growth, subdued inflation, positive corporate earnings, and substantial foreign inflows, there is a possibility that the Nifty could touch the 20,000 mark soon this year.