Stock Market Big Events 2020: The year 2020 is going to end and the stock market is going to start the new year on its time. Market sentiments are very strong during this time and investors are constantly investing their money in the market. This rally in the market is not just because of select sectors or select stocks. Rather, it includes midcap and smallcap in addition to lodgecap. However, the picture of the market that is being seen right now is completely different from many months of this year. In March this year, there was a historical decline in the market and the returns of about 90 per cent shares were negative. While the year also started with a strong boom that continued till February. Know some big events of the stock market, which directly affected the investors.
Union Budget 2020
On 1 February last year, Finance Minister Nirmala Sitharaman presented the budget. After the budget, there was a fierce rally in the market due to the expectations of the budget. The market reached a record high in February. While the government insisted on consumption to bring the economy back on track, in the budget the emphasis was on increasing infrastructure, income of farmers. At the same time, the Finance Minister introduced a new income tax structure. Given the focus on the economy, market sentiments were eroded. Although there was a fall in the market on the budget day, but when the clarity came, shopping in the market increased.
This rally of the market did not last long after the budget. The market reached its lower levels due to Corona virus in March. On March 24, the Sensex hit a low of 25638.9. At the same time, the Nifty also came at the low level of 7511. The first corona virus case was found in India only in January. In view of the increasing rate, a nationwide lockdown was imposed in March. The economy came to a standstill due to the lockdown. Business of companies started falling. Most of the sectors were in decline, due to which their shares fell drastically. People also panic panic in the market. When the Sensex and Nifty fell around 40 percent, the midcap and smallcap weakened more than 50 percent.
The unlocked phase began gradually to open up the economy after Lockedown. During this period, phase-wise different sectors were exempted with certain conditions. At the moment, it showed its effect and from July the market started gaining momentum again. This boom started in July and by November, the market reached its record high. When the Sensex crossed the 47000 level in December, the Nifty also crossed 13750.
The central government announced a relief package at different stages to recover from the loss to the economy from the lockdown. Through this, measures were taken to increase liquidity in the market with increasing demand. At the same time, the common man was also given relief. The Government of India announced a COVID Relief Package worth 29.87 lakh crore in view of the corona epidemic. This was equivalent to 15 percent of GDP.
In August this year, gold crossed the rate of Rs 56000 per 10 grams. While at the end of last year gold had closed below 40 thousand. In view of this spectacular rally in gold, many investors took money out of the market and put it in gold. Economic uncertainty was the main reason behind this rally in Gold due to Corona epidemic.
The RBI cut interest rates by 115 basis points this year and the repo rate has come down to 4 per cent. This RBI effort has also proved to be a game changer for the market. Apart from RBI, central banks around the world also maintained rates at lower levels.
Due to the lockdown, there was a sentiment of uncertainty in demand, due to which the crude went below $ 20 in April 2020. However, later the demand increased in anticipation of recovery of the economy. At the same time, OPEC countries also tried to keep prices stable through the production cut. Crude is now around $ 50 per barrel in the international market.
Tension with china
This year, tension between India and China remained in the discussion. Due to this, there was some pressure in the market. However, this sentiment ended later.
The US Presidential election also affected the markets this year. In the US, there was an atmosphere of political resilience regarding elections. Which increased foreign investment in emerging markets like India.
Covid 19 vaccine
The corona vaccine proved to be a major trigger for the market in the last months of the year. Many companies claimed their vaccine to be safe and their trial reached the final phase. Investors’ sentiments were strengthened on the hope that the vaccine would enter the market soon. Vaccination has also started in some countries. The introduction of the vaccine means that the corona epidemic will get rid of birth and the economy will be back on track.