The year ended with BSE’s market cap at Rs 266 lakh crore ($3.6tn), which elevated India to the sixth largest market spot in the world in terms of market value. Samvat 2077—the calendar followed by mainly the trading community on Dalal Street—will go down as one of the best years in terms of returns and the regularity with which the leading indices hit new all-time highs, even though the economy struggled due to the ongoing Covid-induced pandemic, market players said.
Metals, banking & financial services, and software exporters led the rally while pharma and FMCG stocks witnessed muted gains in prices. The gains came on the back of nearly Rs 1.25 lakh crore worth of net buying of stocks by foreign institutional investors, while domestic institutions, which include mutual funds, insurance companies, banks and others financial companies, were net sellers at about Rs 34,700 crore, CDSL and BSE data showed.
The year will also be marked as the year when new age consumer-facing tech-enabled companies, for years being privately held by a handful of private equity-venture funds, started getting listed. The trend, often called private going public by merchant bankers and analysts, was led by food delivery company Zomato and soon followed by CarTrade. A host of such companies, that include FSN E-commerce (Nykaa), PB Fintech (Policybazaar) and One 97 Communications (PayTM), are now in various stages of going public during Samvat 2078.
According to Yesha Shah, head of equity research, Samco Securities, Samvat 2077 could be termed as the year of unicorns and technology companies. Technology adoption, which was formerly limited to certain sectors, has now become mainstream, Shah wrote in a note to clients.
“With the advent of e-commerce, (the) move to online prompted major alterations in sectors such as travel, hotels, restaurants, entertainment, and education. With increased internet access, smartphone penetration, and 5G modernization in India, the user base of Indian tech-driven fintech, edtech, healthtech and e-commerce start-ups is rapidly growing. This trend is backed up by India’s growing list of Unicorns, which has resulted in the nation having the world’s third largest start-up ecosystem. As a consequence, it was not unexpected that 2021 provided an appropriate opportunity for numerous such start-ups to make their public market debuts,” Shah wrote.
The year’s rally on D Street also catapulted some Indians to the club of the richest people in the world and Asia. The list includes Mukesh Ambani of Reliance Industries, Gautam Adani of Adani Group and Radhakishan Damani of D-Mart.
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