Like Covid-19 Cases, Stock Market Indices are Also Creating All-Time Highs in India and Nepal

Author's Note: Some readers have expressed their dissatisfaction with this article comparing the stock market with the pandemic. This article is meant to illustrate how the stock indices are rising despite the pandemic. This will in fact be a topic of discussion for business schools and economic analysts for years to come. Sharesansar reports everything from a journalistic perspective. At the end of the day, it is what it is. Nonetheless, readers are advised to follow safety protocols, take care of their families, and face the crisis with high morale. 

Covid-19 cases aren't the only statistic that is at an all-time high in India and Nepal. Their respective capital markets are also creating history and breaking previous records during the pandemic.

Sharesansar had previously reported how the stock markets of the world were at their highest levels during the first wave of the virus. Now that neighboring countries India and China are going through a massive second wave, their stock market indices are also creating one milestone after another.

For instance, Nepal's stock market index NEPSE saw the highest intraday turnover of all-time this Sunday, at a staggering figure of over NRs. 17.028 Arba. While this is a minuscule figure for its neighbor SENSEX, the accomplishment is still significant for Nepal's baby capital market. Over 3,000 companies trade in the Bombay Stock Exchange every day. In contrast, less than 200 scrips are traded in Nepal's capital market. Nepalese laws do not allow a Nepalese citizen to invest in international stock exchanges, including India.

While writing this, the S&P BSE SENSEX is at 52,075.45, compared to its all-time high at 52,154.13. Meanwhile, the NEPSE index is at 2,855.14, which is higher than the all-time high closing of 2,827.93. Note that the market is still open for the day, and it shows strong signs of creating a new all-time high closing by the market-close today.

How does the reader feel about the gain in stock indices of both countries during the pandemic? What are the plausible reasons? The comment section is for you.