Will the dominance of small businesses continue in fiscal year 23?

Although the front-line indexes – the S&P BSE Sensex and Nifty 50 – are set to post a double-digit return for a second consecutive fiscal year in 2021-22 with gains of 16 percent and 18 percent, respectively, lowercase letters focus all of the action in last year. The Bahrain Bourse Small Cap Index is up 35 per cent so far in FY22 – far outstripping the gains in the S&P BSE Midcap and BSE 500 indices which are up 18 per cent and 20 per cent respectively during the period. The small cap rise was driven by improved earnings and strong inflows from local investors into local stocks. Domestic mutual funds saw a record net inflow of 1.73 trillion rupees in fiscal year 22. However, FPIs reported a record net inflow of 1.42 trillion rupees during the period, according to data from National Securities Depository Limited. Despite the strong showing, most analysts expect markets to remain volatile in FY23 amid multiple headwinds. They feel that the ongoing geopolitical crisis between Russia and Ukraine will keep commodity prices, especially crude oil, elevated, which in turn will keep stock market gains in check. F said. K. Vijayakumar, chief investment analyst at Geojit Financial Services, said persistent inflation in the US and an increasingly hawkish US Federal Reserve are negative for global stock markets.

The US dollar index at 99 and the 10-year bond yields at around 2.5 per cent are also areas of concern. Listen to what he said. On Thursday – the last day of the March Series Options and Series futures expiration, markets are likely to remain range-bound amid volatility. Apart from that, the end of the financial year on March 31st will also affect the minds of the investors as they book profits/losses on their investments for the past financial year.

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