The stock market is turning volatile now after hitting record highs first and then coming under pressure from rising US bond yields — a trend that could pose a challenge for retail investors.

On Thursday, the Sensex surged over 520 points to close above 50000 after Wednesday’s 627-point fall.

The benchmark index was choppy during Thursday’s session as it hit a low of 49478.53 and a high of 50092.48 — a gap of almost 614 points.

Market circles aver that the swing came from a mix of good and bad news. While global cues were positive following US President Joe Biden’s announcement of a multi-trillion-dollar infrastructure investment plan, back home there are worries about the rising Covid-19 cases and the possibility of another lockdown in some parts that could affect near term growth.

“Retail investors will have to deal with more such swings in the coming days that will also be marked by intermittent corrections. The only hedge against volatility for them is to take exposure in quality stocks and remain invested despite the ups and downs,’’ an analyst from a foreign brokerage remarked.

Siddhartha Khemka, head — retail research, Motilal Oswal Financial Services, however, feels that going ahead, the Indian markets are likely to track global cues. They would also focus on quarterly results which would kick start from mid-April.

“Markets are likely to remain in a consolidative mode ... Hence investors would do well by gradually accumulating good quality companies,’’ he said.

The Sensex soared 68 per cent while the Nifty gained almost 71 per cent in the previous fiscal. For the current fiscal, observers do not expect similar gains though volatility is likely till Covid-19 infections subside.