One year of lockdown: Markets take leap of faith, m-cap hits Rs 2-trn mark

Indices hit their lows on March 23, 2020, just a day before the nationwide lockdown was imposed. The benchmark Sensex and Nifty closed at 25,981 and 7,610, respectively, the lowest in four years, after nose-diving 33 per cent in just 13 trading sessions. India’s market capitalisation dropped from Rs 160.6 trillion in mid-January to Rs 102 trillion on March 23. 

But, aggressive stimulus measures announced by central banks, especially the US Federal Reserve, helped in not just stemming the fall, but led to a dramatic rebound. This spurred foreign capital flows into emerging markets, including India, and the Sensex and Nifty doubled in less than 11 months, touching record highs, while several stocks jumped manifold.