Indian equity markets will wrap 2021 marked by the highest record, the biggest explosion of initial public offering a year increases the number that has never been seen before, and small investors rush to join madness.
Sensex rose 20 percent and nifty 22 percent while BSE MIDCAPS and Smallcaps outperformed both the benchmark index like last year, each up 37 and 58 percent.
All sectors contribute to the rally when they rise more than 30 percent each with the best performing metal rally more than 100 percent. Realty was second with an increase of 88 percent as housing demand soared, reduced housing supplies and a large number of projects were announced.
FMCG and Pharma each rose 30 and 32 percent, at least thanks to the high base last year.
With the central bank throughout the world which continued monetary policy that was easily announced last year to support growth, funds flow to the market. Liquidity is also assisted by loosening Covid restrictions, September quarter revenues.
Both the benchmark index – Sensex and Nifty – rose more than 35 percent from 52 weeks in January to reach a record high of October. Sectoral participation extended to see as many as 77 percent of companies on the BSE 500 Crank contribution positive.
Of the 500 companies in the index, 68 percent of the double-digit clock growth, 13 percent recorded a three-digit refund, and one company even manages a four-digit leap: Tata Teleservices.
Translated from the percentage of provisions, the three-digit zone saw 65 companies up more than 100 percent during this year to become multi-baggers.
This includes Trident, Poonawala Fincorp, Total Gas, JSW Energy, Adani Transmission, Gujarat Fluorochemicals, Mind Technology, Angel One, Adani Enterprises, Balaji Amines, Indian Energy Exchange, Tata Motors, Tata Motors, and Deepak Nitrite.
“Multi-baggers 2021 are mostly small and medium hats that are treated again due to recovery of their sharp income,” said Abhay Agarwal, founder and fund manager at Piper Serica Advisors.
Many of these stocks are Darlings markets in small and medium-sized rallies before correcting sharply due to high assessment and lower income growth than expected, he added.
Also, many benefit from ‘alternative to China’ themes such as Balaji Amines, Hikal and Deepak Nitrite. “And medium IT companies like the happiest thought, persistent systems, Tanla, KPIT, Mastek and Mindtree are valued for high-taught products and high growth products,” Agarwal said.
Recovery in economic activities encourages logistics companies such as Allcargo, TCI Express and Distriplets while health care companies such as Apollo Hospitals Enterprise and Max Healthcare who benefit from increased health service spending throughout the board, he added.
In the future, medium caps and small hats are expected to perform well but Bull Run can lose some steam because, among other factors, the US Federal Reserve said it would end the purchase of pandemic era bonds in March and paved the way for three quartes, The increase in interest rates at the end of 2022.
“Performance Performance of Nifty is not possible to support the increased risk of external (Federal Reserve Move, an increase in interest rates, the increase in commodity prices) and volatility can encourage preferences to large chapel baskets,” said Gautam Duggad, Head of Research, Institutional Equity, Oswal Financial Services Motilal.
“Moreover, big hats now offer better judgment comfort in our view when the middle / small index of trading is almost equivalent to good,” he added.
Agarwal from Piper Serica feels a return driven by P / E expansion that has been arrested in 2021 so now the income of medium-sized companies and small hats must justify their premium judgment.