Samvat 2077: How have the main stock market indices evolved since the last Diwali?
The past year has been a pure delight for investors, as the markets generated an unprecedented return during Samvat 2077. Between November 13, 2021 and November 2, 2021, the main indices rose enormously, well supported by stocks of varied sectors and exuberant participation. individual investors.
Among the major indexes, between the aforementioned period, Benchmarks Nifty 50 and Sensex gained 41% and 38.2%, according to the Zee Business TV report. Meanwhile, Nifty Bank recorded 40%, Nifty Midcap 100 and Nifty Smallcap 100 respectively 70.4% and 81.5% during the same period.
What aroused the feelings of the market
Speaking on what led to this stellar spectacle put on by these indices and the stock market in general, VK Vijayakumar, chief investment strategist at Geojit Financial Services, said abundant liquidity, low interest rates , a good performance of the corporate sector, almost unaffected by the pandemic were some of the factors that boosted market sentiment. “From the last Diwali to date, the Nifty has increased by around 42%,” the expert said.
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He said the fundamental support for the market recovery came from the steady improvement in business results, indicating a sharp upturn in India Inc’s performance, which in turn was aided by tax cuts. on corporations and a sharp drop in interest rates.
Exuberant participation of retail investors
He stressed that the notable feature of this rally was the aggressive participation of retail investors. The notable feature of this bullish rally, which has not seen a major correction so far, is the exuberant participation of retail investors. Total Demat accounts in India have now crossed 6 crore with 1.42 crore added. in fiscal year 21. Retail investors now account for 45% of transactions in the spot market and enthusiastically buy whatever FIIs sell, ”said Geojit Financial Services chief investment strategist.
The important role played by retail investors was evident from the fact that despite the big FII sale of Rs 11,308 crore in July and Rs 13,550 crore in October, the market was not affected much, the expert stressed.
“In short, retail investors are currently the dominant players in the market. We don’t know how long this will last as valuations are stretched and many foreign brokerage houses have downgraded India on excessive valuations.” , said Vijayakumar.
Keep Expectations Under Control for Samvat 2078: Experts
As the market has given massive returns, investors should not have the misconception that it will continue to achieve similar returns in the future.
“Investors should expect only modest returns for the next Samvat. It would be prudent to remain invested in high quality equities in performing sectors such as private banking; “said the Geojit Financial Services strategist.
Prem Prakash, CEO of CapitalVia Global Research Limited, said: “At Samvat 2078, the markets may not maintain the same pace and record profits at higher levels. However, we expect industry and equity specific action to continue.