Domestic investors cut silver last year amid worldwide turmoil, earned Rs 16 lakh crore
Last year was very disappointing for the stock market. Many such IPOs came which divided the investors. However, still, the Indian markets kept themselves strong.
Highlights
- The Sensex had closed with a loss for 7 months last year.
- Despite this, the market cap of Sensex companies increased.
- The Indian market performed better than the international market.
New Delhi. In the year 2022, despite the deepening concern about inflation and geopolitical uncertainties around the world, the domestic stock markets performed well and investors’ capital increased by Rs 16.38 lakh crore. Analysts have attributed this good performance to factors like better macroeconomic fundamentals of the Indian economy, confidence of retail investors, and repeat purchases by foreign investors. He says that it is because of these reasons that Indian markets have shown far better performance in the year 2022 than other markets of the world.
In the early part of the year, the markets were hit hard by the outbreak of war between Russia and Ukraine. When Russia attacked Ukraine on February 24, the BSE’s benchmark index Sensex collapsed with a huge fall of 2,702.15 points. However, in the months that followed, the Sensex recovered its lost ground and despite all the ups and downs, ended the year with a gain of 2,586.92 points, or 4.44 percent. The year also saw the Sensex hit its all-time high when the index touched 63,583.07 on December 1. However, on June 17 this year, the Sensex also fell to a low of 50,921.22 points.
Aggressive domestic investors
Suman Banerjee, CIO of US-based hedge fund Hedonova, said, “In the year 2022, Indian stock markets have registered gains despite all the challenges and withdrawal of capital by foreign investors. It has got significant support from domestic institutional investors and belligerent economic fundamentals. Although some areas have performed better while some areas have lagged behind. The effect of these positive points has been that this year the market capitalization of the companies listed on BSE increased by Rs 16,38,036.38 crore to Rs 2,82,38,247.93 crore. On December 5 this year, the market valuation of these companies reached a record level of Rs 290.46 lakh crore.
Sensex closes with losses for 7 months
Out of 12 months of the year, Sensex closed with a monthly gain in five months while in seven months it had to suffer a loss on monthly basis. July proved to be the most profitable month in which the Sensex registered a gain of 4,662.32 points i.e. 8.81 percent. HDFC Securities Managing Director and Chief Executive Officer Dheeraj Reilly said that despite the challenges, Indian markets have also benefited from better management of inflation and rising corporate earnings. This year the country’s largest insurance company LIC was also listed in the stock market. Currently, the market valuation of LIC is Rs 4,33,009.34 crore. At the end of the year, Reliance Industries Limited was the country’s most valuable company with a valuation of Rs 17,23,979.45 crore. In the year 2021, the Sensex made a tremendous jump of 21.99 percent and a huge increase of Rs 78 lakh crore was registered in the capital of investors.
