First year of Modi 2.0 Marked with Market Volatility
The NDA government completed its first year of its second term on May 30.the term was marked with unusual volatility. There were 28 such days when the Sensex fell more than 500 points in a single day on a closing basis, while there were 11 days when the market plunged over 1,000 points as per industry data.
On four days, the market fell over 2,000 points and on March 23, 2020, the Sensex fell 3,935 points which is the highest single-day fall in the first year of Modi 2.0.
There were 24 days when the market benchmark rose over 500 points, while on 9 days, Sensex surged over 1,000 points. On April 7, 2020, the Sensex surged 2,476 points which is the highest single-day gain during the first year of Modi 2.0, data from Ace Equity showed.
India is struggling to fight against COVID-19. While the government has announced a series of measures that are seen as long term reforms, the market seems to be expecting more. Hopefully, once the stimulus measures begin to show impact, the market will see many days of strong gains.