The benchmark Nifty50 index has crossed the 12,000-mark for the first time since February 20. In the interim eight-and-a-half-month period, the gauge for the performance of India’s 50 blue chip companies plunged to as low as 7,511 on March 23.
Since then, it has rebounded 61 per cent, wiping out all the losses triggered by Covid-19. While the index is almost back to pre-Covid highs, the stock prices for over half of its components are still below their February 20 levels.
Analysts have coined the term K-shaped recovery to describe the market’s trajectory. Sectors that have seen uptrend are health care and information technology.
Meanwhile, banks and financial stocks have been stark underperformers. Nifty’s PSU components have also been laggards.