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Samvat 2077 sees historical run for market, led by economic recovery on vaccination –

The Indian equity market made a historic run in Samvat 2077 with the benchmark indices Sensex and Nifty crossing 60,000 and 18,000 marks for the first time.

The rally sustained despite the spread of the second COVID wave in April-May 2021 and subsequent lockdowns and the looming fear of a third wave during August-September 2021.

The BSE Sensex rose 37 percent (16,500.48 points) and the Nifty50 index added 40 percent (5,149.4 points) from the last Diwali. However, the two indices touched the record highs of 62,245.43 and 18,604.45 on October 19.

The move is supported by positive factors like favourable monetary policies across the world, better corporate earnings, economic data points, complete economic opening, containment of COVID-19 cases on significant pickup in the pace of vaccination and the third consecutive year of normal monsoon.

“Abundant liquidity, low-interest rate, good performance of the corporate sector almost unaffected by the pandemic and, perhaps more importantly, the ‘retail stock rush’ are the factors that have lifted the market sentiment,” said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

“The fundamental support to the market rally has been from the steadily improving corporate results which indicate a sharp turnaround in India Inc’s performance, which in turn, has been aided by the cut in corporate tax and a steep decline in interest rate.”

The notable feature of this bull rally, which has not seen a major correction so far, is the exuberant participation of retail investors. The total demat accounts in India has now crossed six crores with 1.42 crores getting added in FY21 alone.

“Retail investors now account for 45 percent of cash market transactions and retail is enthusiastically buying everything that FIIs are selling,” Vijayakumar said.

Other factors, including blockbuster IPOs, record GST collection, increased foreign investment, and easing inflation also help the Indian economy from disturbing pandemic.

So far, in 2021, over 40 companies have floated their IPOs to raise more than Rs 70,000 crore. Goods and Service Tax (GST) collections for October came in at Rs 1.30 lakh crore, compared with Rs 1.17 lakh crore in September.

October GST collections were not only the second highest for the fiscal year, but the second highest monthly collections since the introduction of the nationwide tax in 2017. The highest ever was also this year, at Rs 1.41 lakh crore in April.

The October GST print takes total gross GST collection for the year to Rs 8.12 lakh crore. All but one month in the current fiscal year (Rs 92,849 crore in June) have been comfortably above the Rs 1-lakh-crore mark.

Foreign institutional inflows remained at over Rs 60,000 crore in the equities, while DII saw outflows worth of Rs 32,000 crore since last Diwali.

The broader indices – BSE Midcap and Smallcap – have outperformed the main indices with a gain of 61 percent and 80 percent.

On the sectoral front, all the sectors have given a positive return to the investors. The BSE Metal and Realty index top the list with over 100 percent gain, since November 14, 2020 Muhurat trading.

“With the economic cycle picking up, we expect the corporate earnings growth to revive as well. Markets have always moved in tandem with earnings growth. Although there would be ups and downs in between, we expect the overall trend of the market to remain positive in Samvat 2078 as well,” said Motilal Oswal, MD and CEO, Motilal Oswal Financial Services.

“Some of the themes which we expect to play out during Samvat 2078 are certain segments were we can see earnings normalisation with improving economy, increasing spending to benefit companies in Technology, Travel, Tourism, leisure and QSR segment.”

Real Estate and ancillaries like cement and other building material companies are also expected to witness an increasing demand. Finally, stock selection was the key in generating returns within the Midcap space during Samvat 2077 – a trend which we believe could continue going ahead as well.

Disclaimer: The views and investment tips expressed by investment expert on are his own and not that of the website or its management. advises users to check with certified experts before taking any investment decisions.