A MORE THAN 100 per cent surge in equity markets has encouraged many small investors to start trading or directly invest in stocks. They have also been encouraged by the wave of initial public offerings (IPOs) that have given stupendous listing-day gains. Over 10 million Demat accounts were opened in 2020, which is a record.
However, there is every chance that the easy gains of the past year may make investors complacent and prone to taking riskier bets. Here’s how they can be cautious and yet partake of the bull market gains.
The Bull Market
After six to seven years of weak economic growth, we are at the cusp of economic revival. Companies are reporting good numbers despite the nation suffering the deadly second wave of the pandemic. The BSE Sensex has risen 120 per cent from the lows of April last year that it had touched amid the announcement of the nationwide lockdown. “Eventually, all market levels are a function of two things—corporate profitability and valuations driven by fund flows. Despite the first wave and the stringent lockdowns in Q1 of last year, corporate India has reported record profits,” says Nilesh Shetty, Fund Manager, Equity, Quantum AMC.
Most companies reported record margins and strong revenue growth in FY21. The year saw 15 per cent top-line growth and 85 per cent bottom-line growth at the index level (excluding financials).
How Long Will the 'Bull' Run?
There is a strong correlation between GDP growth, corporate earnings, and equity returns. Expected double-digit GDP growth will boost corporate earnings. As long as corporate India continues to grow, share prices will keep going up, say experts.
Esta historia es de la edición October 03, 2021 de Business Today.
Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.
Ya eres suscriptor ? Conectar
Esta historia es de la edición October 03, 2021 de Business Today.
Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.
Ya eres suscriptor? Conectar
The EV Craze
The country’s growing luxury car market is seeing a shift with environmentally-conscious consumers betting on electric vehicles as a sustainable travel option. Though just 6%, the share of EVs in the luxury segment is rising rapidly
The Storage Boom
Data centres are being built at a frenetic pace in india as companies scramble to meet the ballooning demand from mobile phone users and firms adopting al. Can the country’s energy infrastructure keep up?
India Beckons
Owing to rising incomes in India and overall wealth expansion, luxury brands are wooing the country like never before
The Pearls of The Sea
Caviar, that rare food, is considered the epitome of fine dining. Here is everything that you need to know about it
66.Brand persona should define the core"
I’d say this was a strategic pivot. We had an iconic brand, but had, over time, evolved into diversified lines of businesses that could no longer be represented within the confines of our ‘name’.
Unwind in Style
Here is acomprehensive list of top tech picks that help you unwind by blending perfection in performance with luxury
A Lifelong Affair with Inspiration
In my art journey, the diversity of my acquisitions mirrored the expanding horizons of my understanding of art
Make it Bubbly
Champagne is much more than just a symbol of celebration and success. Know about its nuances beyond the bubbles
Palatial Splendour
Buoyed by renewed demand, sales of the glitzy mansions of the ultra-rich are surging like never before. Real estate majors are looking to capitalise on this by launching luxury offerings in record numbers
Of Beaches and Cream
GianChand Single Malt Whisky