New Delhi: Share Market Minnows made a stellar performance in 2021 amid Dalal Street Dream Run and delivered returns of up to 60% and is likely to continue sailing north in the new year as well.
Addressing the uncertainties induced by the pandemic, the Indian equity market posted astonishing gains this year and achieved several milestones with smaller stocks gaining the most from the strong momentum.
From reaching the crucial 50,000 mark in January to the 61,000 level in October, the BSE Sensex has had an epic journey this year.
This year till December 28 mid Cap The index rose 6,712.46 points or 37.41% while the smallcap index jumped 10,824.78 points or 59.81%.
In comparison, the BSE Sensex jumped 10,146.15 points or 21.24 per cent.
“We are in a structural bull market where midcap and smallcap stocks outperform. It was a very difficult period for midcap and smallcap stocks from early 2018 to March 2020 due to the announcement of long-term capital gains (LTCG) Regulatory changes in the mutual fund industry therefore made valuations attractive.
“Even major announcements of economic reforms are driving many small companies to great growth,” Parth NyatiThe founder of Tradingo said.
The record-breaking rally on Dalal Street came amid massive liquidity support from global central banks, massive vaccination campaigns and favorable domestic economic policies.
The midcap index reached its all-time high of 27,246.34 points on October 19, 2021. Similarly, the smallcap index touched its all-time high of 30,416.82 on the same day.
The 30-share benchmark also hit its all-time high of 62,245.43 on October 19.
The market remains a brave face even after the pandemic ravaged the early part of 2020, which saw bears in full force as concerns over the lockdown dented economic activity as well.
Abhay said, “There are mainly two reasons for the outperformance of smaller indices. These indices had underperformed after their big outperformance in 2017. Hence, there is a lot of ‘catch-up rally’ in high growth smallcap stocks. There was more growth.” Agarwal, founder of Piper Serica said.
Second, he said continued selling by FPIs in frontline stocks in the latter half of the year brought down the benchmark, while DIIs in smallcaps and inflows from HNIs and retail investors continued.
According to analysts, smaller stocks are usually bought by local investors while foreign investors focus on bluechip or larger firms.
The midcap index tracks companies whose market value is on average one-fifth of the bluechip while smallcap companies account for about one-tenth of that universe.
The Sensex rose 15.7% in a memorable year 2020, where the benchmark index saw ruthless selling and massive buying.
Small and midcap indices emerged as the market favourites in 2020. Last year, small and midcap stocks had gained up to 24.30 per cent.
Analysts said that the smallcap index is always more volatile than the mid and largecap indices.
On the road ahead for smallcap and midcap indices next year, Nyati said, “The bull market is likely to continue for at least the next 2-3 years, so midcap and smallcap stocks will continue to outperform. However, investors will continue to do well.” have to be very selective from here on.”
Motilal Oswal Broking & Distribution said in a note that the market trend could be volatile in the near term due to potential risks from Omicron variants and weak global cues, but would result in strong earnings distribution with positive macro-economic data in the long run. Hold down the key to move the markets upward.
2021 proved to be a remarkable year giving high returns to equity investors.
“There are a few things that turned out to be a long-term game changer. Firstly, a very strong IPO market provided Indian retail investors an opportunity for the first time to invest in leading consumer tech companies like Zomato, Nykaa, PayTM and . Policybazaar India,
“Secondly, despite significant selling by FPIs, the markets saw strong participation from domestic investors. Glad to see the latter as strong domestic participation is a must to create a strong capital market,” Agarwal said.
Analysts said 2021 turned out to be the best IPO year in two decades for the Indian equity market, with over 60 companies coming up with their initial public offerings.
“It has been a wonderful year for investors without any hiccups. Many stocks and several IPOs have given good returns to investors,” Nyati said.
Seeing the strong investor interest this year, several IPOs including Devyani International, Nazar Technologies, Go Fashion (India) Limited and Rolex Rings were subscribed more than 100 times. Most of the IPOs also got listed with a premium higher than their issue price after receiving huge subscriptions.
In the note, Motilal Oswal Broking & Distribution said Nifty touched a record high of 18,600 in October 2021, buoyed by a fall in COVID cases, a significant pickup in the pace of vaccination and a sharp recovery in economic activity. “Consistent, positive earnings surprises also led to a re-rating and rally in the market.”
On sectors to emerge as the biggest winners from smaller indices in 2021, Nyati said, “The two leaders of this bull run – metals and IT – continued to perform well for the second year in a row, while realty, capital goods and infrastructure have . Emerging as new leaders who can outperform in the years to come. The relatively small but very old sectors, textiles and sugar, surprised everyone with their outperformance.”
After touching its new high in October, the Nifty rallied over 10% in the last two months, led by global factors, including a taper announcement from the US Federal Reserve, higher commodity prices and lowering of the US dollar index. includes strengthening.
“A total of 63 companies raised Rs 1.19 lakh crore through IPOs, making it the highest ever fundraiser in a particular year. Several new age digital dramas got listed this year (Paytm, Nykaa, Policy Bazaar, Zomato) , etc.) and many others are on the line.
According to Motilal Oswal Broking & Distribution, “FIIs have become the big sellers and have been selling continuously since October 21. However, this was counterbalanced by DIIs, which continued to market in India along with record participation of retail investors. There are buyers.”
Sentiments in global equities were affected in November with the detection of the new COVID variant Omicron.
Addressing the uncertainties induced by the pandemic, the Indian equity market posted astonishing gains this year and achieved several milestones with smaller stocks gaining the most from the strong momentum.
From reaching the crucial 50,000 mark in January to the 61,000 level in October, the BSE Sensex has had an epic journey this year.
This year till December 28 mid Cap The index rose 6,712.46 points or 37.41% while the smallcap index jumped 10,824.78 points or 59.81%.
In comparison, the BSE Sensex jumped 10,146.15 points or 21.24 per cent.
“We are in a structural bull market where midcap and smallcap stocks outperform. It was a very difficult period for midcap and smallcap stocks from early 2018 to March 2020 due to the announcement of long-term capital gains (LTCG) Regulatory changes in the mutual fund industry therefore made valuations attractive.
“Even major announcements of economic reforms are driving many small companies to great growth,” Parth NyatiThe founder of Tradingo said.
The record-breaking rally on Dalal Street came amid massive liquidity support from global central banks, massive vaccination campaigns and favorable domestic economic policies.
The midcap index reached its all-time high of 27,246.34 points on October 19, 2021. Similarly, the smallcap index touched its all-time high of 30,416.82 on the same day.
The 30-share benchmark also hit its all-time high of 62,245.43 on October 19.
The market remains a brave face even after the pandemic ravaged the early part of 2020, which saw bears in full force as concerns over the lockdown dented economic activity as well.
Abhay said, “There are mainly two reasons for the outperformance of smaller indices. These indices had underperformed after their big outperformance in 2017. Hence, there is a lot of ‘catch-up rally’ in high growth smallcap stocks. There was more growth.” Agarwal, founder of Piper Serica said.
Second, he said continued selling by FPIs in frontline stocks in the latter half of the year brought down the benchmark, while DIIs in smallcaps and inflows from HNIs and retail investors continued.
According to analysts, smaller stocks are usually bought by local investors while foreign investors focus on bluechip or larger firms.
The midcap index tracks companies whose market value is on average one-fifth of the bluechip while smallcap companies account for about one-tenth of that universe.
The Sensex rose 15.7% in a memorable year 2020, where the benchmark index saw ruthless selling and massive buying.
Small and midcap indices emerged as the market favourites in 2020. Last year, small and midcap stocks had gained up to 24.30 per cent.
Analysts said that the smallcap index is always more volatile than the mid and largecap indices.
On the road ahead for smallcap and midcap indices next year, Nyati said, “The bull market is likely to continue for at least the next 2-3 years, so midcap and smallcap stocks will continue to outperform. However, investors will continue to do well.” have to be very selective from here on.”
Motilal Oswal Broking & Distribution said in a note that the market trend could be volatile in the near term due to potential risks from Omicron variants and weak global cues, but would result in strong earnings distribution with positive macro-economic data in the long run. Hold down the key to move the markets upward.
2021 proved to be a remarkable year giving high returns to equity investors.
“There are a few things that turned out to be a long-term game changer. Firstly, a very strong IPO market provided Indian retail investors an opportunity for the first time to invest in leading consumer tech companies like Zomato, Nykaa, PayTM and . Policybazaar India,
“Secondly, despite significant selling by FPIs, the markets saw strong participation from domestic investors. Glad to see the latter as strong domestic participation is a must to create a strong capital market,” Agarwal said.
Analysts said 2021 turned out to be the best IPO year in two decades for the Indian equity market, with over 60 companies coming up with their initial public offerings.
“It has been a wonderful year for investors without any hiccups. Many stocks and several IPOs have given good returns to investors,” Nyati said.
Seeing the strong investor interest this year, several IPOs including Devyani International, Nazar Technologies, Go Fashion (India) Limited and Rolex Rings were subscribed more than 100 times. Most of the IPOs also got listed with a premium higher than their issue price after receiving huge subscriptions.
In the note, Motilal Oswal Broking & Distribution said Nifty touched a record high of 18,600 in October 2021, buoyed by a fall in COVID cases, a significant pickup in the pace of vaccination and a sharp recovery in economic activity. “Consistent, positive earnings surprises also led to a re-rating and rally in the market.”
On sectors to emerge as the biggest winners from smaller indices in 2021, Nyati said, “The two leaders of this bull run – metals and IT – continued to perform well for the second year in a row, while realty, capital goods and infrastructure have . Emerging as new leaders who can outperform in the years to come. The relatively small but very old sectors, textiles and sugar, surprised everyone with their outperformance.”
After touching its new high in October, the Nifty rallied over 10% in the last two months, led by global factors, including a taper announcement from the US Federal Reserve, higher commodity prices and lowering of the US dollar index. includes strengthening.
“A total of 63 companies raised Rs 1.19 lakh crore through IPOs, making it the highest ever fundraiser in a particular year. Several new age digital dramas got listed this year (Paytm, Nykaa, Policy Bazaar, Zomato) , etc.) and many others are on the line.
According to Motilal Oswal Broking & Distribution, “FIIs have become the big sellers and have been selling continuously since October 21. However, this was counterbalanced by DIIs, which continued to market in India along with record participation of retail investors. There are buyers.”
Sentiments in global equities were affected in November with the detection of the new COVID variant Omicron.
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