The dichotomy between the economy and the stock market has been one of the biggest enigmas of the past 18 months. The period will be remembered as the best for the stock market, but also one which saw the highest gross domestic product (GDP) contraction in the history of India.
The fear instilled by the Covid pandemic pushed the stock market in a panic zone in March 2020, but that also sowed the seeds of the next bull run. In the next 18 months, the BSE Sensex zoomed over 34,000 points from its March 2020 low of 25,639. Similarly, the Nifty moved up around 11,300 points from its March 2020 low of 7,511.
Remarkably, in this calendar year, the Nifty 50 index climbed to its all-time high in 46 out of 180 trading sessions. The Nifty index is a composition of 50 stocks, while the Sensex contains 30 stocks.
The stock market is being supported by adequate liquidity from foreign investors. Thanks to the massive balance sheet expansion by the US central bank, the Federal Reserve, and the European Central Bank (ECB), the world is awash with liquidity. Every month, the Fed is buying bonds worth $120 billion. Its balance sheet is $8.45-trillionlarge, a 102 per cent increase on a year-on-year basis. Never in history has any central bank expanded its balance sheet by $4 trillion in a single year. ECB’s balance sheet was worth €8.2 trillion at the end of September, according to Refinitiv. In search of return, money is pouring into high-growth markets like India, which attracted $31 billion in the last one year ending July.
This story is from the October 2021 edition of Outlook Money.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the October 2021 edition of Outlook Money.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
Stay Ahead Of AI-Powered Cyber Fraud
AI has become an integral part of our lives, right from customer service at banks to insurance claims. But it has now become a powerful arsenal for the fraudsters too who are increasingly using AI to scam individuals and corporations alike to commit fraud. The key is to stay vigilant
Travelling To Europe? Pack In The Essential Covers
Smart travellers must know that insurance is a must-have. From essential health coverage to theft protection and trip interruptions, know what you need for a worry-free Europe trip
How To Spend Wisely This Year-End
We all spend during the year-end. But the trick is not to overspend or borrow, either from friends, or your own investment, to fund your indulgence. Maintaining balance is the key
Travel Now Pay Later (TNPL)
Travel now, pay later (TNPL) is a close cousin of the more popular buy now, pay later (BNPL) schemes.
12 Books Devina Mehra Loved Reading In 2024
Listing books of her choice, among the ones she reads during the year, is ace investor Devina Mehra's favourite year-end activity. She says it's a daunting task to pick around 12 books from a list of 50.
Here's How To Avail Of Ayushman Bharat Yojana
Launched in 2018, the Ayushman Bharat Yojana aimed to provide health coverage to targeted benefi ciaries from the Socio-Economic Caste Census (SECC) 2011, based on deprivation and occupational criteria.
'Focus On The Business, Assess If You Want To Be A Partner For 10-20 Years'
Professor Sanjay Bakshi, a value investor, behavioural economist and adjunct professor at Flame University, Pune, gives his unique perspective on how to choose a stock, in an interview with Nidhi Sinha, editor, Outlook Money, as part of the Wealth Wizards series. He also shares his learnings from role models Warren Buffett, Charlie Munger, Benjamin Graham and others, and how being a chartered accountant, economist, investor and teacher make him into what he is today. Edited excerpts from the interview
The New Trump Card For IT, Pharma
Donald Trump has been re-elected as the 47th President of the US after a gap of four years. Here's how it will affect the Indian markets and how it will benefit sectors such as IT, pharma, export-oriented sectors and others
European Sojourn
Tight on budget? Dump the popular European destinations for the little-known wonders that are equally attractive
Gold ETFs And FoFs
While Indians love to invest in physical gold, even mutual funds offer the option, but in paper format.