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Resource centre on India's rural distress
 
 

A Market gone awry -CP Chandrasekhar and Jayati Ghosh

-The Hindu Business Line/ NetworkIdeas.org

It defies all logic. As expected, once the implications of the Covid-19 contagion began to be absorbed, the BSE Sensex lost 37 per cent in value, falling from a level just above 41,000 on February 19, 2020, to just below 26,000 on 23 March 2000 (Chart 1). That was the day when the nationwide lockdown was declared and three days before the first of the government’s stimulus packages was unveiled. The lockdown triggered the severe contraction that overwhelmed the economy over the next two quarters. Yet, starting March 23, the Sensex got off its trajectory of decline, and set itself on a rising curve, which despite fluctuations seems relentless. On February 3, 2021, a little more than 10 months since the latest rise began, the index cross the 50,000 mark, registering a 93 per cent increase relative to its March 23, 2020 low.

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