Markets witness the highest quarterly jump in the last decade

Following liquidity easing, the June quarter ended on Tuesday with SENSEX and Nifty witnessing a jump of 23 per cent and 25 per cent respectively in the past three months. This quarterly jump is the maximum in the last decade.

Once previously, during the June 2009 quarter, Sensex had surged about 49 per cent while Nifty had surged about 42 per cent. This was followed by a sharp rise in both indices in the June 2020 quarter, the biggest quarterly rise in a decade.

FIIs have made a net equity investment of Rs 28,610.25 crore while DIIs were buyers of Rs 12,965.77 crore during this quarter. However, mutual funds stood as net seller by selling equity investment of Rs 5,427.02 crore during the same timeframe.

With these investments, markets have observed liquidity resulting in improvement in heavy weight stocks. Simultaneously, small-cap and mid-cap stocks have also witnessed signs of revival. Small-cap index has jumped nearly 33 per cent while mid-cap index gained almost about 26 per cent during April-June 2020. During the quarter January-March 2020, small-cap index and mid-cap index had witnessed major declines of 30 per cent and 29.5 per cent respectively.

Global markets have also witnessed a recovery in the past three months. US major indices Dow Jones and Nasdaq gained nearly 18 per cent and 31 per cent respectively. European benchmarks DAX and CAC 40 gained nearly 24 per cent and 12 per cent respectively.