Investors' wealth surges over ₹59.75 lakh crore in FY22

In the fiscal year 2021-22, investors' wealth increased by about ₹59.75 lakh crore, owing to a generally positive trend in domestic stocks, with the benchmark index Sensex rising over 18% over the period.

The Sensex gained 9,059.36 points, or 18.29 percent, in the fiscal year 2021-22.

Despite concerns about geopolitical tensions, inflation, and FII selling, the market capitalization of BSE-listed companies increased by ₹59,75,686.84 crore to ₹2,64,06,501.38 crore in the fiscal year 2021-22.

Foreign investors have bought nearly ₹1.25 lakh crore worth of Indian equities since 23 March 2020 while domestic institutions have pumped in over ₹90,000 crores.

On January 17, this year, the market capitalization of BSE-listed businesses reached an all-time high of nearly ₹280 lakh crore. Analysts say that the loosening of restrictions, aggressive vaccination campaigns, and less severe COVID waves have all helped to calm fears about the pandemic.

“Moreover, strong support from the government and central bank (keeping interest rates low & adequate liquidity) to revive the economic growth helped markets inch higher,” Ajit Mishra, VP-Research, Religare Broking, said.

The BSE Sensex reached its all-time high of 62,245.43 on October 19 last year.

"Market mood improved, and increased investor activity in the primary markets could be one of the reasons." "The fantastic surge in the secondary market, paired with the list of well-known firms going public, enhanced investor confidence and garnered significant traction," Mishra added.

With concerns over rich valuations easing a bit, Street is fairly positive on 2022 returns, with some brokerages projecting a Sensex target as high as 72,000 and a corresponding Nifty target of 21,000, ET reported.

Reliance Industries Limited is the country’s most valued firm with a market valuation of ₹17,81,834.57 crore, followed by TCS ( ₹13,83,001.33 crore), HDFC Bank ( ₹8,15,166.80 crore), Infosys ( ₹8,02,309.19 crore) and ICICI Bank ( ₹5,07,434.03 crore) in the top five order.

The bullish targets suggest a 23-26 per cent potential upside for the market indices in the Calendar year 2022.