Slow & steady: From 60,000 to 65,000, benchmark Sensex takes 438 days

The latest 5,000-point upmove of the index has taken nearly two years

The benchmark Sensex on Monday topped the key milestone of 65,000 points for the first time. The 30-share index finished at 65,205 points — after gaining nearly 3 per cent in the past four trading sessions. The latest 3 per cent have taken the index just four days to gain but the 8.5 per cent move — from 60,000 to 65,000 — has taken it 438 days. Sensex had topped 60,000 for the first time on September 24, 2021. The previous 5,000-point move for the index — 55,000 to 60,000 – had come in just 28 trading sessions. 

However, sharp outflows from foreign portfolio investors (FPI) between October 2021 and June 2022 kept a tight leash on the market. During the nine-month period, FPIs had pulled out a record Rs 256 trillion (over $30 billion) as soaring inflation led to unwinding of post pandemic policy measures by the US Federal Reserve and other central banks. In March, the Sensex had declined to 57,085 as the velocity of FPI selling had once again intensified in January and February. However, a reversal in FPI flows has led to a 14 per cent, or 8,117 point, jump in the Sensex from this year’s low, underscoring the lumpy nature of the market.