Market benchmark Sensex fell more than 450 points, falling near 49,150 in the morning trade on January 22, indicating that the level of 50k is still too hot to handle for the bulls.
Such corrections in the market are in line with the expectations as the market cannot ignore the reality of valuations completely. In fact, experts suggest buying quality stocks on such dips as the underlying market sentiment remains bullish.
The Sensex hit 5,000 in 1999, took eight years to climb to 20,000 and 12 years after that to hit the 40,000-mark on May 23, 2019, in intraday trade. This time, it has taken the index less than two years to gallop another 10,000 points to hit the 50,000-mark.
In this period, IT, pharma and telecom stocks have gained the most in comparison to their peers.
Data available with Ace Equity shows BSE IT index jumped almost 74 percent since May 23, 2019, to emerge as the top gainer among the sectoral indices, followed by BSE Healthcare which rose 62 percent.
The benchmark Sensex gained 27 percent in that period while the BSE Midcap and Smallcap indices rose 29 percent each.
Among the laggards, BSE Infra fell 6 percent in that period. BSE Oil & Gas also declined by 3 percent.
Banking and financial stocks did log gains but failed to appear among the top gainers. BSE Bankex index rose about 7 percent during this period while BSE Finance rose about 11 percent.
In this less than two years' period, 58 stocks from the BSE 500 index jumped over 100 percent, 17 have jumped over 200 percent and 5 stocks - Adani Green Energy, Tanla Platforms, Dixon Technologies, Alkyl Amines Chemicals and Alok Industries - jumped over 400 percent, data available with Moneycontrol showed.
With a gain of more than 2,200 percent, shares of Adani Green Energy emerged at the top in the BSE 500 index, followed by shares of Tanla Platforms that rose nearly 1,600 percent since May 23, 2019.
Data available with BSE showed that as many as 6,01,75,743 investors were registered with BSE by the morning of January 22, which is 3.01 percent up month-on-month, 7.57 percent up quarter-on-quarter and 27.49 percent up year-on-year.
Retail investors from tier-2, 3 cities are flocking the Street as due to low-interest rates, investors are not finding good yields through fixed income instruments.
Experts say equity participation from retail investors is here to stay as a large portion of this growth is driven by better internet connectivity, paperless account opening, and easy accessibility through investment apps.
Liquidity boost, low rate regime, healthy corporate earnings and robust foreign fund inflows are pushing the market high.
As per data NSDL available, foreign portfolio investors have pumped in about Rs 14,724 crore in the Indian equities in January so far.