Indices Settle with Gains on Diwali Day; Begins Samvat 2078 on a Positive Note
As the nation geared into celebrations of the providential day of Lakshmi Puja, the third and most important day of Diwali, on November 4th, the domestic equity benchmarks of BSE Sensex and NSE Nifty both rose by 0.5% to settle at 60,067.62 and 17,916.80 respectively. These opportune rises come in the backdrop of suboptimal global cues in recent weeks that have invoked mild stagnancy in the indices post mid-October.
The ending of Sensex and Nifty in the green on this jubilant occasion can be accredited to the 2021 Diwali Muhurat Trading Session. Muhurat trading, a practise dating back to 1957 for Sensex and 1992 for Nifty, serves as a commemoration of the commencing of the new Vikram Samvat 2078 (Samvat being the traditional Hindu calendar year beginning on Diwali).
Trading for markets, which remained closed for the remainder of the day, commenced at 6:15pm and ended at 7:15pm (local time) on Thursday. Equity growth during this session was propagated as a result of mass purchasing across sectors (with the exception of metals), with all of the sectoral indices ending the day with increases.
Amongst the sectors, the top gainers during the Muhurat were auto, FMCG, industrial as well as capital goods. Concurrently, the session also witnessed the broader indices encountering a greater pace of growth, relative to the primary benchmarks, with the BSE Midcap and Small Cap rising by 0.8% and 1.5% respectively.
Samvat 2077: A Monumental Year to Remember for Indian Market Enhancement
The period elapsed during Samvat 2077 has been the epitome of history breaking, particularly for the Indian equity market. In spite of a multitude of calamities, including but not limited to the tumultuous second wave of Covid-19, as well as the looming threats of a third wave, a multitude of contributors such as revamped global monetary practices, energised rates of vaccination nationally, as well as accentuated consumerism, has facilitated the robust recovery of the Indian equity markets, and by extension, the economy.
The Samvat calendar (approximately 56.5 years ahead of the Gregorian calendar) witnessed the end to its 2077th year on the eve of Diwali 2021, and between the duration from last year’s Diwali to the current one, Indian indices exhibited resounding augmentations.
During this period (which is essentially a YoY metric), BSE Sensex and NSE Nifty50 thrived remuneratively to increase by 37% (16,500 points) and 40% (5,200 points) respectively. This index upgrade for Sensex also serves as the best Samvat increase in the last 12 years.
Diwali eve and the end to Samvat 2077 also generated another prospective figure - the fact that the BSE market capitalisation enlarged vigorously to Rs. 265 lakh crore ($3.6 trillion), nearly Rs. 2 lakh crore ($30 billion) higher from the valuation this time last year. Subsequently, India claimed 6th position in terms of the largest markets in the world in terms of market valuation.
Samvat 2078 expects to translate this phenomenal momentum to attain further growth.
With input from Money Control, LiveMint, The Hindu and Times of India
Author and Editor: Ronojoy Borpujari