In FY24, investor wealth increased by $1.6 trillion, the most in a year
MUMBAI: In the fiscal year 2024, the wealthiest Indian investors gained a total of Rs 132 lakh crore, or around $1.6 trillion.
The BSE’s market capitalization increased from Rs 262 lakh crore to Rs 394 lakh crore, or $4.7 trillion, between April 2023 and March 2024 as investors from Dalal Street dismissed concerns about increasing interest rates, geopolitical unrest, and the possibility of rising petroleum prices. This was India’s largest-ever yearly increase in market capitalization.
The sensex increased by about 1%, or 655 points, on the last trading day of the fiscal year, closing at 73,651, which was fewer than 600 points below its record high finish on March 7.
India Indexes
According to BSE statistics, throughout the year, investors snapped up shares in old-economy firms that seemed to have promising futures. In contrast, buying interest in software exporters, FMCG, and private banks was very low. Tata Motors more than quadrupled in value among sensex stocks, while state-owned NTPC almost doubled. Conversely, Kotak Mahindra Bank, Asian Paints, and HUL were some of the leading laggards.
Over the year, the sensex increased by 25% while the Nifty as a whole increased by 29%. Real estate gained 129%, utilities 93%, and electricity 86% among the sector indexes. The research indicated that bankex gained 16%, FMCG gained 17%, and financial services gained 22%.
The severe weakening in the Chinese market was a boon for the domestic market, even if the US kept its interest rate higher. This increased the likelihood of a selloff by foreign funds drawn away from riskier developing markets like India and into the US due to the higher risk-free rate. Foreign portfolio investors invested a net of Rs 2.1 lakh crore in Indian equities as a consequence, which is the second-best annual flow on record after Rs 2.7 lakh crore in FY21.
China’s downturn coincided with the Indian economy’s strong resistance to a number of unfavourable external forces. “India is a preferred destination for foreign flows due to the positive GDP outlook, impetus on the manufacturing sector and structural reforms,” Sanjay Bembalkar of Union MF said.
