The benchmark Nifty50 index had hit the 8,000 mark for the first time in September 2014. It took the index over six years (1,613 trading sessions) to scale the 13,000-mark— a gain of more than 60 per cent.
On an average, every 1,000-point milestone took about 270 trading sessions. Even the latest 1,000 point increase took nearly 18 months—the Nifty had first topped the 12,000 mark in June 2019. However, the index has managed to chart the same path nearly 10 times faster this year.
The Nifty had slipped below the 8,000 mark on March 23 at the peak of the Covid-19 selloff. From there to 13,000 has barely taken 170 trading sessions, or eight months.
The 1,000-point milestone has taken an average 28 trading sessions. This sharp rise has stunned many on the Street, given the devastating impact caused by the pandemic.
The aggressive stimulus measures taken by global central banks have helped the markets defy economic pain. The latest round of optimism has been fueled by the US election results and the progress in vaccine trials. Markets are expecting the economy to soon be back on its feet. If it fails to do so, the Nifty’s speedy path may see many speed bumps.