From the Russia-Ukraine crisis to the fear of recession, the Indian market has successfully faced global challenges

Year Ender 2022: Apart from geopolitical turmoil in 2022, Indian stock markets have weathered these crises better than other markets amid pressure on the global economy from rising energy prices and tight monetary policies of central banks across the globe. faced. The unwavering faith of domestic investors kept Dalal Street largely untouched by global volatility and benchmark indices of the Indian market weathered the bearish signals with confidence. After remaining sluggish for most of the year, the Sensex started gaining momentum in the festive season and closed at its all-time high of 63,284.19 on December 1.

Kovid’s shadow deepens again at the end of the year

However, at the end of the year, the hopes of a boom began to fade when the possibility of another wave of the global epidemic deepened with the increase in the cases of Kovid infection in China. The Sensex is up only 1.12 per cent on a year-to-date basis (till December 25), but is still the world’s best performing broad market index.

This was the condition of major indices this year

In fact, none of the major global indices posted gains this year. This includes Dow Jones (down 9.24 per cent so far in 2022), FTSE 100 (down 0.43 per cent), Nikkei (down 10.47 per cent), Hang Seng (down 15.82 per cent) and Shanghai Composite Index (down 16.15 per cent).

Much of the credit goes to domestic retail and institutional investors, who kept their faith in the market despite negative headlines and offset the impact of record selling by foreign funds.

FII and DII investment figures

Foreign Institutional Investors (FIIs) have withdrawn a record Rs 1.21 lakh crore from the Indian equity markets in 2022 so far. On the contrary, domestic investors bought on every dip. Retail investors’ holding in NSE listed firms reached an all-time high of 7.42 per cent as on March 31, 2022. Meanwhile, mutual fund investments through SIP plans are also on the rise, touching a record high of Rs 13,306 crore in November (equity and debt segments).

What do financial experts say?

Siddhartha Khemka, head (retail research), Motilal Oswal Financial Services, said GST collections remained above Rs 1.4 lakh crore for the eighth consecutive month in November, while e-way bills remained above the seven crore mark since March 2022. Other economic indicators like GDP and PMI have also improved after the pandemic. He said that behind India’s better performance, along with strong corporate earnings, the increase in capital expenditure by the central government has also contributed.

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