AhmedabadAn hour ago
- Copy link
Iconic image
- 4.7 percent investors are still active in the equity market, if the number doubles, the market will achieve rapid growth
In terms of investment, Indian investors are running counter to global market conditions. Despite the global economic crisis for some time now, the market cap of Indian listed companies has reached a new milestone of 300 lakh crores due to aggressive investment in share market, mutual funds by Indian investors. If we consider after the corona epidemic, the market cap was 200 lakh crores in February 2021, in which it has taken an average of two and a half years to grow by 100 lakh crores. While the market cap has increased by 55 lakh crores in the last one year.
The Indian stock market has fallen marginally after a one-sided rally. The Sensex fell 33 points to close at 65446.04 while the Nifty closed on strength near 19400 points. With the Indian stock markets touching new highs, retail investors are also gaining momentum. Compared to developed countries, the investment of family savings in the stock market in India has been only 4.7%. According to Indian experts, the flow of investment in the equity market in India is still very low as compared to the developed markets, but considering the speed with which the attraction of the youth has been increasing for some time now, the market will reach new heights quickly.
The participation of retail investors through mutual funds is increasing. The number of SIP accounts grew by 19% year-on-year to 6.5 crore. While their monthly investment increased by 20% annually to Rs. 14,760 crore has been incurred. SIP’s share in domestic equity inflows has averaged 60%. There are indications that investor enthusiasm in this segment will increase further in the near future. The number of investors in the equity market has increased to 14 crores. However, the share of active investors is not even 15 percent. If investor enthusiasm increases and new young investors are encouraged to invest in the long term, the growth of the market will be faster.
Analyst… Investors’ attraction increased from physical to financial
Investors shifting away from real estate, gold and silver and traditional savings towards financial assets such as primary-secondary market, mutual funds, bond market and insurance have started to accelerate, due to which the Indian equity market will continue to gain momentum. – Partha Sandhadia, Research Analyst-Torin Wealth
Marketcap position of listed companies |
|
year | Marketcap |
Nov.-2014 | 100 |
Dec-2017 | 150 |
Feb-2021 | 200 |
Aug.-2021 | 250 |
July-2022 | 300 |
(Note – Marketcap in Lakh Crore Rupees) |
Market Cap of Top 5 Countries in the World |
|
the country | Market Cap |
America | 44.54 |
China | 10.26 |
Japan | 5.68 |
Hong Kong | 5.14 |
India | 3.66 |
(Note – Market Cap in Trillion Dollars) |
.