Stock Markets: Riding high on liquidity, vaccination drive

Indian stock markets witnessed an upward journey for the sixth consecutive year as BSE Sensex and NSE Nifty ended year 2021 with a net gain of 17.77 per cent and 19.63 per cent respectively. Huge liquidity due to global central banks' stimulus plans and vaccination drive across the world spurred bulls to take over the stock markets including Indian bourses. A Rs 100 lakh-crore PM Gati Shakti Master Plan for infrastructure development and an ambitious asset monetisation pipeline further bolstered the markets. In 2021 so far, BSE Sensex gained 9,371.67 points, or 19.63 per cent, and closed at 57,113 points on December 24. Similarly, NSE Nifty too moved up by 3,022 points, or 17.77 per cent, to end at 17,003.75 points. It may be recalled that Sensex moved up 15.75 per cent and Nifty 14.90 per cent in pandemic-hit 2020.

Investors' wealth soared by a whopping Rs72 lakh crore in 2021 as the cumulative value of all listed shares in India rose to Rs260 lakh crore. The BSE Sensex surpassed historical milestones by breaching the 50,000-mark and 60,000 level. The highest level in 2021 so far was 61,765.59, also lifetime high, recorded on October 18. As many as 63 IPOs mopped-up record Rs1.2 lakh crore, and SME IPOs brought in Rs710 crore. Within the equity segment, the IPO route helped companies raise Rs 1.2 lakh crore, Qualified Institutional Placement (QIP) route added Rs 41,894 crore, rights issue of shares to existing shareholders accounted for Rs 27,771 crore, while Offer for Sale (OFS) through stock exchange mechanism contributed Rs 22,912 crore. On the other hand, mutual funds (MF) sector recorded addition of a staggering Rs 7 lakh crore to their asset base in 2021 on the back of buoyant equity markets and a bunch of large NFOs.