This comes as the economy is on the path of recovery after being hit by the Covid-19 induced lockdown

Equity benchmark Sensex rallied over 300 points to hit the 50,000-mark for the first time ever in early trade on Thursday on strong gains in index majors Reliance Industries, Bajaj Finance, and ICICI Bank amid positive global cues.

It took a little over three months for BSE Sensex to climb from 40,000 to 50,000 points and took just nine sessions to gain 1,000 points from 49,000 points.

Similarly, the broader NSE Nifty surged 85.40 points or 0.58 percent to trade at 14,730.10. It too scaled its highest level of 14,738.30 in early trade.

This comes as the economy is on the path of recovery after hitting hard by the Covid-19 induced lockdown.

According to the Chief Investment Strategist at Geojit Financial Services VK Vijayakumar, the rally in stock markets, which is global, has been triggered by the massive liquidity injection by the central banks. He was quoted in a Financial Express report.

This ultra-loose monetary policy of massive liquidity injection and historically low-interest rates is the response to the severe recession caused by the pandemic, he added.

Bajaj Finserv was the top gainer in the Sensex pack, rising around 4 percent, followed by Bajaj Finance, Reliance Industries, IndusInd Bank, and Axis Bank. On the other hand, TCS and HDFC twins were the laggards.

According to the Head-Strategy at Reliance Securities Binod Modi, domestic equities look to be good at the moment given positive global cues.

“We believe the underlying strength of the market remains intact given the continued recovery in key economic data and expectations of a sustained recovery in corporate earnings. Further, ongoing vaccination drive and likely opening-up of the economy at full scale augur well for the economy and equities,” wire agency PTI quoted Binod Modi as saying.

Additionally, favorable monetary policies of global central bankers, a weak dollar, and large fiscal stimulus in the US are expected to ensure sustained FPIs flow in domestic equities, he said.