Indian equity market witnessed a historical journey in Samvat 2077 with the benchmark equity indices BSE Sensex and NSE Nifty surpassing 60,000 and 18,000-mark, respectively, for the first time. Where the 30-share index Sensex has advanced over 35 per cent since last Diwali, broader indices the BSE Midcap and Smallcap have also jumped 58 per cent and 77 per cent, respectively.
According to market watchers, benign global liquidity, containment of COVID-19 cases, significant pickup in the pace of vaccination, sharp recovery in corporate earnings, and a market-friendly budget lifted the market mood in the recent past.
Sectorwise, all sectors have also delivered a positive return to investors. The BSE Metal index emerged as the top gainer in the list. The index has soared 112 per cent since November 14, 2020, the Muhurat trading session last year. Also, the BSE Realty, Power, Consumer Durables, Capital Goods and Information Technology have gained between 50 per cent and 110 per cent.
On the other hand, healthcare (up 25 per cent) and FMCG (up 21 per cent) were underperformers as defensives took a breather.
With a rally of 16,472 per cent, Flomic Global Logistics surged to Rs 205.50 on October 29, 2021. The scrip was at Rs 1.24 on November 14 last year. JITF Infralogistics (up 3,360 per cent), Sportking India (up 1,745 per cent), Jindal Photo (up 1,637 per cent), Xpro India (up 1,616 per cent) and Hindustan Everest Tools (up 1,549 per cent) stood among other major gainers on the BSE.
Brightcom Group, ANG Lifesciences, Available Finance, Radhe Developers, Ushdev International, Halder Ventures, Orchid Pharma, Ritesh Properties, Jaykay Enterprises, Authum Investment & Infrastructure, Looks Health Services, Nahar Spinning, 3I Infotech, Hazoor Multi Projects, Mangalam Industrial Finance and Jayaswal Neco Industries have also gained between 1,000 per cent and 1,550 per cent in the past on year.
Sharing its views on the factors that worked in favour of the equity markets, Motilal Oswal Financial Services in a report said, "Macroeconomic trends saw a good recovery, with high-frequency indicators (GST collections, e-way bills, PMI readings, power and fuel demand) improving month-on-month. Exports have emerged as a growth engine with India reporting the highest ever export in a single quarter in 2QFY22. The country witnessed the third consecutive year of normal monsoon which is also likely to aid rural demand, and with the government balance sheet in good stead, we expect the government to press the fiscal pedal to drive growth over the next 6-12 months."
Barring Eicher Motors (down 2.2 per cent), Dr Reddy's Laboratories (down 4.4 per cent) and Hero MotoCorp (down 14.7 per cent), other components in the Nifty50 index have delivered a positive return to investors. Tata Motors has gained the most with 225 per cent since last year. It was followed by Tata Steel (up 167 per cent), Bajaj Finserv (up 143 per cent), Hindalco Industries (up120 per cent), SBI (up 119 per cent), Grasim (up 105 per cent) and ONGC (up 105 per cent).
What to expect from Samvat 2078
Going ahead, Motilal Oswal believes that investors should zero in on travel and tourism as well as real estate sectors. "With India crossing 100 crore vaccinations and opening up of various sectors, we expect the leisure segment to do very well over next 6-12 months. Real estate is on the cusp of an upcycle with several macro factors supporting like low-interest rates, benign prices and rising affordability, coupled with low homeownership in India," it said. The broker is positive on United Spirits, VIP Industries, Lodha and UltaTech Cement.
On the other hand, HDFC Securities added that equity as an asset class will continue to do well in a market like India. Investors can focus on sectors like auto and capital goods after subdued performance over the past few quarters. The brokerage recommended stocks like Larsen & Toubro, HPCL, Bharti Airtel, Reliance Industries, Indian Bank and Bank of Baroda for the next one year.
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