Investor wealth grows ₹ 32.49 lakh CR mammoth in 2020 pandemic

The Covid-19 epidemic has devastated lives and livelihoods globally, shutting down businesses and shaking global stocks.

But amid all the gloom, India’s stock indices gave hope of returning to winning tracks towards the end of the year.

The Sensex gained 15.7% in a momentous 2020, where the BSE benchmark saw both ruthless selling and massive buying.

Markets experienced volatile trends during the year, with the benchmark collapsing to its one-year low of 25,638.9 on March 24, returning to its all-time high of 47,896.97 on March 24. last day of transaction.

Throughout the year, the 30-stock Sensex BSE made monthly gains in seven of them, while closing with losses in five of them.

March turned out to be a terrible month for Dalal Street, with the Sensex plunging 8,828.8 points or 23% during the month as concerns over the impact of the coronavirus pandemic on the economy rocked sentiment investors.

It was a last volatile trading day for the market, as the benchmark BSE rose 5.11 points to its new closing high of 47,751.33.

Throughout the year, the market capitalization of listed companies 32,49,689,56 crore to reach 1,88,03,518.60 crore.

“The effect of the March crash was completely canceled out over the next few months, and the markets rose much more to highs.

“As expectations of a rebound in economic growth and the resulting resurgence in corporate earnings, inject markets with unusual optimism, that India would continue to be one of the fastest growing economies. fastest growing market in the world with a large consumer market, and extraordinary potential for growth and development, instills greater confidence not only in domestic investors, but also in foreign investors, ”said Joseph Thomas, head of research at Emkay Wealth Management.

“This is the singular factor that would keep the markets going, but we need to be careful with the pandemic, monitor its effective containment in crucial geographies like the US and the EU, and also integrate the implications of the pandemic. rising inflation and oil prices in our expectations on interest rates, ”he added.

A number of initial lead board public offerings during the year, many of which received massive subscriptions, including Burger King India and Mrs Bectors Food Specialties, added to market optimism.

“2020 has turned out to be one of the most unpredictable years for everyone. Stock markets around the world have been on a rollercoaster ride during this calendar year.

“The Nifty-50 fell 40% between January and March, then rose 86% from the March lows. Unprecedented fiscal and monetary support from governments and central banks has led to a massive infusion of liquidity into global markets. India is one of the few emerging markets to receive strong REIT flows, ”said Rusmik Oza, executive vice president, head of fundamental research at Kotak Securities.

Reliance Industries Limited remained the nation’s most valuable company with a market valuation of 12,58,157.10 crore, followed by TCS ( 10,77,009,46 crore), HDFC Bank ( 7,91,312,61 crore), Hindustan Unilever Limited ( 5,62,378,04 crore) and Infosys ( 5,34,940,34 crore) in the top five.

“As we enter 2021, markets are at record highs and showing resilience thanks to abundant liquidity, positive developments on the vaccine front and signs of economic recovery,” said Hemang Jani , Chief Equity Strategist at Motilal Oswal Financial Services. (Brokerage and distribution).

Vinod Nair, head of research at Geojit Financial Services, said: “Despite the devastation caused by the COVID-19 pandemic, the economy is expected to recover in 2021, giving stock markets a boost in addition to improving corporate profits. “

This story was posted from an agency feed with no text editing.

To subscribe to Mint newsletters

* Enter a valid email

* Thank you for subscribing to our newsletter.

Source