November 24, 2022 made it to the record books as the day when Sensex reached 62,412 and in the process created a new all-time high for itself. It took over 13 months for the Sensex to breach the previous record high of 62,245 it achieved on October 19, 2021.
On the other hand, it took the Sensex just over five months to reverse all its losses it incurred from its earlier peak and touched the yearly low of 50,921 on June 17, 2022.
Rising inflation, aggressive interest rate hikes, recessionary fears and ensuing geo-political tensions created severe headwinds for financial markets the world over. Increasing yields and dollar index forced Foreign Portfolio Investors (FPIs) to undertake a hasty retreat from the Indian markets, which resulted in the lows created in June 2022. However, the domestic institutions provided strong support, without which the rout in the Indian benchmarks could have been worse.
Looking at the performance of the BSE Sensex constituents between the previous year’s high and this year’s new high, though the Sensex has remained more or less flat, there are around 12 stocks (comprising 36 percent of Index weight) which have still managed to generate positive returns for the investors while others have declined from the prices they were trading at when the Sensex had created its previous all-time high last year.