In the last financial year 2021-22, small stocks (smallcaps) have given big returns of 36.64 percent to investors. In this way, the shares of small companies have outperformed the Sensex and Nifty in terms of returns. Experts believe that Smallcaps will continue to outperform in 2022-23 as well. In the last financial year, the BSE Smallcap index rose 7,566.32 points or 36.64 per cent. On the other hand, Midcap gained 3,926.66 points or 19.45 per cent. In comparison, the Sensex rose 9,059.36 points, or 18.29 per cent, in the financial year 2021-22.
Heavy volatility in the market in the second half
However, the market faced adverse conditions in the last months of the last financial year due to geopolitical tensions, inflation concerns and selling by foreign institutional investors (FIIs). Analysts said the first half of the last financial year was very good, while the second half saw the market go through volatility.
Market capitalization of top companies increased by Rs 2.61 lakh crore
The market capitalization (market cap) of the top 10 Sensex companies collectively increased by Rs 2,61,767.61 crore last week. HDFC Bank and Reliance Industries were the biggest gainers during the week amid a bullish trend in the stock markets. Last week, the 30-share BSE Sensex rose 1,914.49 points or 3.33 per cent.
HDFC Bank’s market capitalization rose by Rs 41,469.24 crore to Rs 8,35,324.84 crore in the reporting week. The market valuation of Reliance Industries increased by Rs 39,073.7 crore to Rs 17,95,709.10 crore.
FPI withdraws Rs 41,000 crore
Foreign portfolio investors (FPIs) pulled out Rs 41,000 crore from the Indian stock markets in March, continuing their sell-off for the sixth consecutive month. Experts believe that due to the rise in crude oil prices and inflation, there will be volatility in FPI inflows in the near future as well.
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According to depository data, FPIs have pulled out a net Rs 41,123 crore from the stock markets in the last month. Earlier, he had withdrawn Rs 35,592 crore from the stock markets in February and Rs 33,303 crore in January. Foreign investors have been withdrawing from the shares for the last six months. Between October, 2021 and March, 2022 they have pulled out a net Rs 1.48 lakh crore from the Indian markets.
How will the market move this week
On the domestic front, macroeconomic data, the Reserve Bank’s monetary policy review and developments related to the Russia-Ukraine war will decide the direction of the stock markets this week. Apart from this, the trend of foreign portfolio investors (FPIs) and volatility in crude oil prices will also decide the market sentiment.
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Santosh Meena, Head of Research, Swastika Investmart Ltd, said, “The Reserve Bank’s monetary policy will be an important factor for the Indian markets this week. It will also be important to see how FPIs behave in the new financial year after continuous selling in the second half of the last financial year. However, his stance has changed in the last week.