Markets faced corrections due to Covid uncertainty in early FY21: Survey

There were some significant corrections due to COVID-19 induced uncertainty in the beginning of this financial year, however both Nifty-50 and BSE Sensex recovered strongly afterwards, the Survey said

There were some significant corrections due to COVID-19 induced uncertainty in the beginning of this financial year, however both Nifty-50 and BSE Sensex recovered strongly afterwards, according to the Economic Survey 2020-21 tabled in the Parliament on Friday.

It said that the BSE benchmark index rose 68.9 per cent till January 20, 2021. During 2020-21 (up to January 20, 2021), India's benchmark indices Nifty-50 and BSE Sensex reached record highs of 14,644.7 and 49,792.1, respectively on January 20, 2021, the survey said.

"There were some significant corrections due to COVID-19 induced uncertainty in the beginning of this financial year, however both Nifty50 and S&P BSE Sensex index recovered strongly afterwards," it said.

During the same period, the Nifty-50 index of NSE gained 70.3 per cent from March 31, 2020 to January 20, 2021.

India VIX, an index circulated by NSE which indicates the degree of fluctuation that can be expected in Nifty-50 index by active traders over the next 30 days have fallen considerably since March 2020, indicating decline in volatility in the stock market, it added.