Sensex jumps 17% in FY22, among best shows globally - Times of India

Sensex jumps 17% in FY22, among best shows globally – Times of India

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MUMBAI: Indian markets were among the best performing globally with the sensex ending fiscal 2021-22 with an 17% jump to 58,569 points. The Nifty gained 19% at 17,465. In the same period, the Dow Jones index in the US was up about 7% and FTSE in the UK 13%, official data showed.
The strong gains in the leading indices also made investors richer by Rs 58 lakh crore with the BSE’s market capitalisation now at Rs 267 lakh crore.
FY22 will be remembered for a number of milestones. After scaling the historic 50k milestone in FY21, the sensex built on the rally to scale 60k during FY22, but soon left investors jittery as global factors started weighing on sentiments. As a result, foreign funds started taking money off the Indian stock market at an unprecedented speed with the end-of-the-year figure at Rs 1.4 lakh crore — the highest annual net selling figure ever, data from CDSL showed.

Sensex jumps 17% in FY22, among

Among the domestic factors, the weakness of the rupee to a near-record low of 77 to a dollar and strong foreign fund selling hit sentiment.
Among the top gainers were stocks from sectors like power, utilities and metals. Market players pointed out that these were the very sectors that had underperformed the overall market for several years. However, as the global supply chain was impacted again after the Russia-Ukraine war started, metals and utilities companies witnessed strong demand that translated into gains for stocks of companies in these sectors.
During FY22, BSE’s power index had gained 59%, the utilities index 56% and the metals index 48%, ETIG data showed.
In FY23, on the domestic front, rising rate of interest due to spike in oil price-induced inflation and foreign fund selling will continue to dampen spirits. On the global front, the changing geo-political situation in Europe, along with the pace and magnitude of rise in rate of interest in the US and the spread of Covid infection would dictate the markets’ directions, brokers and analysts said.
For investors on Dalal Street, financial year 2022 could be divided into two distinct halves. The first half saw the continuation of the bull rally that had started the previous year and that continued till October when the sensex peaked at slightly above the 62k mark — an all-time high. The next half was of extreme uncertainty due to a host of geopolitical factors that included a galloping US inflation, stoking fears of a rate hike in the world’s largest economy, a war in Europe and the rising crude oil prices.
Among the domestic factors, the weakness of the rupee to a near-record low of 77 to a dollar and strong foreign fund selling weighed on sentiment. However, strong domestic buying countered the foreign selling well and cushioned the market’s fall to a large extent, analysts said.



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