Indian Stock Market In 2022: In the current year 2022, a huge decline was being seen in the stock markets of the whole world. The reason is Russia’s attack on Ukraine and secondly, back-breaking inflation due to the sharp rise in commodity prices. But barring minor shocks due to whatever was happening in the world markets, the Indian markets almost ignored the foreign cues, thanks to the country’s retail investors, who are now very fond of investing in the stock market. is coming. In 2022, only the Indian stock market is the only market in the world which has given positive returns to the investors. While China, America, European markets have given negative returns.
Indian market is not dependent on foreign investors!
In 2022, due to the Russia-Ukraine war, there was a sharp jump in the prices of commodities. Crude oil had reached a record high of $139 per barrel. The prices of food items were also skyrocketing. The retail inflation rate in India in April 2022 was 7.79 percent. After which RBI increased the policy rates five times. Due to inflation in America and Europe, the Central Bank there also made the loan costlier. Due to which Nasdaq has declined by 30 percent in 2022. There is a possibility of recession coming. Foreign investors started withdrawing their investments from the Indian market due to the Fed Reserve making loans expensive. Foreign investors had withdrawn their investment of about Rs 2 lakh from the Indian market. Due to this, the Indian markets declined, but retail investors saved the market from the big fall caused by the selling of foreign investors. As a result, Sensex has reached 63600 and Nifty has reached close to 18900 level. Now the condition is that foreign investors have again started turning to the Indian market.
Growing trust in SIP of mutual funds
Investors who do not want to invest directly in the stock market are investing in the market through Systematic Investment Plan (SIP) through mutual funds. According to the data of the Association of Mutual Funds in India (AMFI), the regulatory body of the Mutual Fund Sector, investment through Systematic Investment Plan (SIP) is making a record. SIP investment has reached a record high of Rs 13,307 crore in the month of November, while an investment of Rs 13,040 crore came in October. This is the second consecutive month when the investment coming through SIP has been more than Rs 13,000 crore, then since May the investment in SIP has been continuously making above Rs 12,000 crore. The stock market has got support from the huge investment of small investors in mutual funds. Despite the indifference to foreign investors, domestic institutional investors held the Indian markets.
How the confidence of retail investors increased
When there was a lockdown in the country in the first wave of Corona pandemic, a tsunami hit the Indian stock market. Nifty 7500 then Sensex rolled close to 25000 points. Due to the lockdown, people were forced to remain locked inside the four walls of the house. Now people were doing office work from home. When there was a huge fall in the market, then the valuations were attracted. In such a situation, retail investors started investing in the market. And in the next two years, he earned tremendous money from the market. The market participation of retail investors can be gauged from the fact that before March 2020, there were less than 4 crore demat account holders in the country, which has now increased to close to 11 crore. In the last one year, 3.30 crore people have opened demat accounts.
IPO market gave excellent returns
Leaving aside the tech companies listed on the stock exchange at the end of 2021, many companies listed on the stock exchange in 2022 have given excellent returns to their investors. This includes Adani Wilmar, a company of Adani Group. Apart from this, IPOs like Vedanta Fashions, Veeranda Learning, Campus Active, Prudent Advisors, Venus Pipes have given excellent returns to their investors.
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