The Indian stock market has created a new history even before the end of September, the second quarter of the financial year 2021-22. This is not the only record made by Sensex. Many other records have been associated with it. Sensex completed the journey from 10,000 points i.e. 50,000 to 60,000 in just 161 days. Whereas it took 415 days to go from 40,000 to 50,000. According to the experts, the rally in the market will continue till March. At the same time, by December, the Sensex can cross the 70,000 marks.
Experts believe that there may be some downside in the short term, but the uptrend will continue in the long term. Whatever negative environment there was for the market, he has come out of it.
Santosh Meena, Research Head, Swastika Investment says that Nifty and Sensex have grown by 140% from the low levels at the time of Corona. The IT sector has shown a boom in the second wave of Corona. If there is any downside in the market from here, then investors should invest in real estate, capital goods, and the infra sector. Also, investors can invest money in SIP of mutual funds. There may be a slight decline in the market in October, but the market may remain bullish for the next 2-3 years.
Shrikant Chauhan, Head Equity Research, Kotak Securities, says that Sensex's 60,000 is a big achievement for India. Especially when there is uncertainty in the markets around the world. In this year, domestic institutional investors have made good buying in the market. Corporate earnings will remain strong in the coming months. This will help in the growth of the market. Investors should make profits in the stocks in which they have made a profit. He said that investors should keep buying selected stocks. Especially from a medium to long-term perspective in strong companies. This purchase should be done in a phased manner. That is, do not invest the whole money in one go.
Krishna Sanghvi, Chief Investment Officer, Equity, Mahindra Manulife Mutual Fund says investors should take the asset allocation route. Investors who want to invest for a short period should curb greed. Long-term investors can invest in SIPs of mutual funds. He says that the Indian economy is one of the best-performing economies in this decade. It is estimated that by 2030 our economy will come to number three, which is currently at number seven. The equity market will continue to run on the growth of the economy.
Prateek Gupta, Institutional Head, Kotak Securities says that the market may remain bullish. Domestic signs are quite positive. The pace of vaccination is fast and in such a situation, the chances of a third wave of corona are low. This is also expected to increase the pace of economic growth.
Anand Shah, PMS Head, ICICI Prudential Mutual Fund says that the Indian economy has come out of a difficult phase. The sharp decline in growth during Corona has now turned into a strong boom. For the last 4-5 years, the wheel of growth has been spinning rapidly, except for the Corona period.
Meanwhile, the results of the companies are also good. That is, the growth of companies listed in the stock market has also been excellent, which may continue in the coming times as well. Experts believe that the growth of companies included in the Sensex can be up to 35% in the current financial year. At the same time, this growth can be up to 20% in the next financial year (2022-23).
There will be many reasons for the growth of the Indian market. Especially the market is getting good support from foreign investors. This can be understood from the decisions by the Central Bank of America and other countries. The US Central Bank Federal Reserve has decided not to make any changes in interest rates for the next 6 months. Interest rates in other countries are either negative or very low. In such a situation, foreign investors are investing in other countries to earn more profit. Among them, the Indian market is finding them the best in terms of returns.
Earlier, if foreign investors (FIIs) used to withdraw money from the market, there was a sharp fall in the market. But now it is not so. Let us understand this with an example, on Thursday itself, FIIs put only Rs 358 crore in the market, whereas mutual funds i.e. domestic institutional investors invested Rs 1750 crore in comparison to them. Domestic institutional investors are now playing a key role in the rise and fall of the Indian market.
For the first time, the market cap of Sensex has crossed Rs 262.80 lakh crore. In the year 2021 Indian market has performed the best. This history has been created by the Sensex or the Indian market when economic activities have been affected due to Corona all over the world.
The first lockdown in March of the year 2020 affected the market tremendously. During this, the Sensex went to the level of 25,681 and felt that the market would take a long time to recover from here. But as the government also talked about finding opportunities in the disaster, the market looked for opportunities beyond that. This was an opportunity for new records, investors' earnings, corporate earnings, and a strong IPO market.
The biggest reason for the growth of the market during Corona was the strong performance of Indian companies. After the lockdown in the last week of March, the economy started opening up from May itself, when the movement of flights was started. The economy may have been affected during Corona, but only after May 2020, its positive signs were visible.
There were many reasons for the excellent performance of the market during Corona. There have been reasons like success in bringing Corona under control, record profits of companies, the trend of foreign investors, the boom in the IPO market, and companies raising money. The government and the Reserve Bank openly worked for the economy during this period and gave relief packages. Between July and December last year, 3,095 companies had a profit of Rs 1.45 lakh crore, which broke the record for many years. For the first time, all state-run banks in India made a record profit-making in the financial year ended March.
Companies raised record capital through IPO, but they also got responses from investors. An important factor in the market boom during Corona was that new investors entered the market. In the last 18 months, more than 2 crore new investors entered the market. During this time more than 50 companies were listed. Because of this, money came into the market and the market boomed.
The market cap of listed companies in April last year was Rs 110 lakh crore. Now it is Rs 260.82 lakh crore. That is, investors have earned Rs 150 lakh crore during this period or can say that the market cap of listed companies has increased by Rs 150 lakh crore.
The number of investors has increased from 5.37 crore in August 2020 to 8 crore now. As far as investors are concerned, maximum investors come from Maharashtra, Gujarat, and then Delhi. Although this trend did not change in Corona, the participation of investors from small towns also started increasing. Maharashtra, Gujarat lagged in terms of increasing the number of investors, while smaller states were ahead.
In Madhya Pradesh, the number of investors has increased by 80% in one year. There were 17.04 lakh investors here a year ago. Now their number has increased to 30.68 lakh. There are a total of 40.74 lakh investors in Rajasthan. In one year 16.51 lakh i.e. 66% of investors have increased. In Punjab, 5.47 lakh or 46.61% of investors have increased in 1 year. There have been a total of 17.22 lakh investors here. There has been an increase of 54% in investors in Jharkhand. There are a total of 11.24 lakh investors here. There are 6.68 lakh investors in Chhattisgarh. 2.50 lakh i.e. 60% of investors have increased in 1 year. 41% in Maharashtra and 28% in Gujarat have grown during the same period.
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