After the auspicious Diwali festival, we have entered into the new Vikram (Bikram) Sanvat (B.S) 2079. Country and its great middle class have joyfully celebrated the festival and with high hopes entering into the new year B.S 2079. Not just socially but economically also for seven years from B.S 2071; past year B.S 2078 has remained the weak and worst year for the investors. The great middle class who tries to earn some extra income from Stock market, literally staggered the development happened in the market in the past year where big investors and High Networth Individuals (HNIs) too experienced the continuous fall in their portfolio for about more than 25% as they were riding a roller coaster ride of the market. After the Covid, the market could recover quickly but again it was adversely affected through various factors during the year and so, many IPOs which planned to come & open into B.S 2078 also went on to backfoot.
With ‘Muhurt Trading’, again the investors have become optimistic believing that unlike it happened in the past, the global scenario will not affect much in this year although all are quite aware that movement of market is not steady certainly.
In the year B.S 2078 Russia-Ukraine not only became the ‘talk of the town’ but it turned out to be the worst factor affecting the market and became ‘talk of the market’ even today. The European economic crisis is also now seen to be linked with the ongoing war. Market is still in fear with the situation moving towards the possibility of supposed alike usage of atomic weapons…!! Impact of the global situation over the market is not a new thing that is experienced by investors. Investors have so far and from time to time undergone the upheaval but taken risk and been with the market. In Covid situation too, the Start-up sector has shown a new direction to the country.
Market situation of the past year has been the worst among the last seven years. At last, it drowned down considerably the safer Chemical sector and then IT sector too. However, the roller coaster ride of B.S 2078 market has taught investors how and where to be alert. Market underwent various storms last year like Inflation, Strict Actions by Banks, Repo Rates, USA Federal Reserve Bank’s increasing interest rates, Crude and War which dragged Nifty down by 2%. Initially the scenario of BUY arose as stocks started showing attractive prices and experts also started giving suggestions for Long-Term Holding but the biggest bitterness spread in the market while Foreign Portfolio Investors (FPIs) withdrew almost $2 Trillion USD! Whereas in their best capacity Domestic Institutional Investors (DIIs) like Insurance Companies, Banks, NBFCs, Pension Fund etc increased their hold and remained with the market.
B.S 2078 remained unexpectedly favourable for the Power sector and good for Capital Goods & FMCG. It gave returns to the power sector almost 38% and 16% & 14% for Capital Goods & FMCG respectively. Market experts are telling that Foreign Investors are now directly investing into Commodity Market, Bullion Market along with Stocks plus the country is becoming rich with thousands of new Start-ups which will attract investors to look back to Indian Markets. The Government of India has announced a number of new projects which will favour employment rate and Infrastructure projects. Upcoming monsoon will also favour a rally concerning Agriculture allied industry stocks. Hence, experts do predict the market to remain stable in this B.S 2079. Such opinions are truly noteworthy that Indian markets have become stronger up to that extent that they can withstand any condition strongly and little temporary storms can’t even touch it. The great Indian middle class with their purchasing power during festivals, MSMEs and Entrepreneurs do keep the heartbeats functional of the market. Government must focus on the best possible things to favour them.
Preparations for the upcoming Budget have started. It seems that welfare schemes will continue keeping next General Elections into consideration so, budget will not be too much inclined towards corporate and that impact shall reflect to market, Inflation will continue affecting the market and so new IPOs will be in ‘Wait & Watch’ mode just like they did in B.S 2078.
Although the World Bank & Rating Agencies would have presented India’s performance as considerably negative, International Monetary Fund (IMF) Managing Director Kristalina Georgieva praised India’s development. She not only praised India in some interviews but she did in the Annual Meeting of the Governors of IMF & the World Bank Group and this must be understood. She praised India’s Digitisation and counted it as a huge main factor for the country’s success. She talked about India as a “bright spot in a dark horizon” showing a clear sign to the world that India is the only fastest growing economy of the world which can’t remain dull for longer and can’t even be ignored.
