Markets Record Most Prosperous Year As Investors Get $1.5 Trillion Richer

The stock market concluded Samvat year 2080 on a disappointing note, with the Sensex dropping 553 points to settle at 79,389, nearing a three-month low. The Nifty on the NSE also closed lower, down 136 points at 24,205. This decline reflected a significant sell-off by foreign funds during the final month, which resulted in a six per cent decrease across major indices.

Despite this downturn, the overall year marked unprecedented wealth creation in the Indian stock market. Since last Diwali, investors' wealth surged by Rs 128 lakh crore (approximately USD 1.5 trillion), reaching a total of Rs 453 lakh crore, making Samvat 2080 the most prosperous year on record. This remarkable growth was bolstered by a stable central government, effective management of inflation amidst geopolitical challenges, strong macroeconomic fundamentals, and record domestic fund inflows totalling Rs 4.7 lakh crore.

Shripal Shah, MD and CEO of Kotak Securities, noted that "despite the geopolitical concerns, domestic events like elections, a good monsoon, strong macro indicators, and Sebi's continuous efforts to protect investors have all contributed to a robust and promising market ecosystem." He also highlighted the surge of new investors eager to participate in India’s growth narrative.

On Thursday, the NSE announced that its investor base has surpassed 20 crore, while the mutual fund industry managed total assets of around Rs 68 lakh crore, with monthly gross inflows through systematic investment plans (SIPs) nearing Rs 25,000 crore—both figures representing all-time highs.

Additionally, gold, a favoured investment among Indians, achieved a 33 per cent annual return, while silver outperformed with a 37 per cent gain. Bitcoin emerged as the top-performing asset class, returning 72 per cent, whereas the rupee and crude oil saw minimal gains.

Looking ahead, Samvat 2081 poses potential challenges for Indian equities, as opposition parties continue to pressure for the resignation of the Sebi chief amid conflict of interest allegations, which have been firmly denied by the regulatory head.

Also Read: Hyundai Motors India Faces Lackluster Stock Market Debut