Equity markets in India surge to new highs

The Bombay Stock Exchange Sensex touched a record high by crossing the 53,000-mark on August 3, 2021. Similarly, the National Stock Exchange soared past the 16,000-mark.

The exuberance in equity markets can be explained by the favourable macroeconomic performance of the country, accentuated by record-high tax collection in terms of share of budgeted value, and an overall return of normalcy in economic activity. News reports also suggest that trading by retail investors has seen a significant increase, led by Robinhood investors or millennial investors, which has pushed FIIs to the background.

Source: CEIC, The Bombay Stock Exchange Limited, National Stock Exchange of India Limited, Livemint

Further data and analysis on India’s economy are available on the CEIC India Economy in a Snapshot – Q2 2021 report.