The surge in stock markets moderates in India
The S&P Sensex of the Bombay Stock Exchange (BSE) has been increasing since November 2020. Although the surge continued through January 2021 to 49,792, inching very close to the 50,000-mark, the rate of increase in terms of the monthly average, moderated. The surge was primarily caused by the announcement of vaccine rollout.
Source: Bombay Stock Exchange Limited
As the markets adjusted their expectations, the moderation in BSE Sensex was also accompanied by moderation in a number of trades and the total value of turnover to 58.8% y/y and 86.3% y/y respectively in January 2021, from 117.3% y/y and 128.2% y/y respectively in December 2020.
Source: Bombay Stock Exchange Limited
The markets are likely to see an increase again in February 2021, since the Indian government released a budget for FY2022 that focuses on the acceleration of economic growth.
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