Investors’ wealth jumped more than Rs 59.75 thousand crore in the 2021-22 financial year, buoyed by a largely booming trend in local stocks as the benchmark Sensex rose more than 18 per cent during the period.
Facing several headwinds in the latter part of the current fiscal year, Sensex finished the 2021-22 fiscal year with a score of 9,059.36 points, or 18.29 percent.
Reflecting optimism in stocks despite concerns about geopolitical tension, inflation fears and FII selling, the market capitalization of companies listed on the Bahrain Stock Exchange increased by Rs 59,75,686.84 crore to Rs 2,64,06,501.38 crore in FY 2021 -22 whole.
“Positive sentiment continued for most of the year, driven by the strength of the economic recovery and earnings on the back of the easing of the COVID waves.
“However, stock markets lost their luster in the last quarter, due to geopolitical tensions and inflation fears, particularly in advanced economies. However, it was a good year for the markets and managed to end with good gains in FY22,” Ajit Mishra, VP-Research , Religare Broking, said.
The market capitalization of the companies listed on the Bahrain Stock Exchange jumped to an all-time high of over Rs 280,000 crore on January 17 this year. Analysts said the easing of restrictions, aggressive vaccination campaigns and less severe COVID waves have eased fears about the pandemic.
“Moreover, the strong support from the government and the central bank (keeping interest rates low and sufficient liquidity) to revive economic growth has helped the markets move higher,” Mishra added.
The BSE Sensex index reached an all-time high of 6,2245.43 on October 19 last year.
Sunil Nyati, Managing Director of Swastika Investmart Ltd. “FY22 remains good for the Indian stock market despite a lot of headwinds. The first half was very good while the market went into consolidation in the second half coupled with high volatility. The beauty of the second half of FY22 is the strong resilience of local investors amidst a lot from global headwinds and sell-offs from large FIIs.”
Highlighting the main factors driving stock markets, Niate said: “The third wave of Covid dominated the first half, opening a strong earnings recovery, but in the second half, the market had to deal with tight monetary policy, high inflation, geopolitical tension, It is one of the best-selling products by FIIs, but the market has shown strong resilience amid a lot of concerns.”
The BSE 30-share index fell 115.48 points, or 0.20 percent, to settle at 58568.51 in choppy trade on the last day of the 2021-22 fiscal year on Thursday.
Regarding the market outlook, Niate said: “We have successfully climbed all the hurdles of fear and are ready to outperform in FY23, but high inflation, and higher interest rates may cause volatility in the near term. Apart from inflation, any surprise on the front of Covid and added that this could represent a significant risk to the market.
Mishra added, “The market sentiment has improved and one of the reasons could be the large investor participation in the primary markets. The massive move in the secondary market along with the list of well-known companies that went public has boosted investor confidence and attracted noticeable attraction.” .
Reliance Industries Limited is the most valuable company in the country with a market valuation of Rs.17,881,834.57 crore, followed by TCS (Rs.13.83.001.33 crore), HDFC Bank (Rs.815166.80 crore), Infosys (Rs.802,309.19 crore) and ICICI Bank (5,07,434.03 crore) Crore) in the top five.
“Even with the markets ending on the last day of the fiscal year in a fairly calm mood, it has made a 19 per cent return this year on Nifty. Such returns in a year when FPI pulled out big money highlights the confidence of India’s investor amidst a large number of headwinds,” according to San Ranganathan, head of research at LKP Securities.
During the 2020-21 fiscal year, the BSE index is up 68 percent.
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