Investors investing in the Indian stock market have suffered huge losses in the current financial year. Actually, investors have suffered this loss due to the ups and downs in the market due to global developments. From March last year to March 31 this year, stock market investors have suffered a total loss of Rs 5.86 lakh crore in the last 12 months. Stock investors’ wealth in the country declined by Rs 5.86 lakh crore during FY 2022-23 with the fall in the domestic stock market. The domestic stock market faced several headwinds in the financial year 2022-23. These include high inflation, global tensions stemming from Russia’s invasion of Ukraine, high interest rates, foreign portfolio investors pulling out and the recent global banking turmoil.
Effect of interest hike by central banks
Fund management company Kotak Cherry’s Chief Executive Officer (CEO) Srikanth Subramanian said, “In this financial year, we have seen aggressive monetary policy stance of central banks of various countries of the world with increase in interest rate, banking crisis in America and Europe and Have seen the Russia-Ukraine war. ”Amidst the sluggish trend in the market, the market capitalization of companies listed on BSE declined by Rs 5,86,605.38 crore to Rs 2,58,19,896.00 crore in FY 2022-23. Partha Nyati, founder of online share trading app TradingNow, said that the main issue facing the stock market during this financial year was inflation. Therefore, interest rates increased worldwide and investor sentiment was affected.
Recession worries further weaken the market
Nyati said that recession concerns and crisis cases in the global banking system further weakened the market. At the same time, the perception of domestic investors was affected after the Adani Group of America’s financial research and investment company Hindenburg Research was accused of stock manipulation and accounting fraud. However, on the last day of FY 2022-23 fresh inflow of foreign funds, managed to end the current financial year with gains on thirty-share BSE Sensex. Talking about the entire financial year, in 2022-23, the BSE Sensex gained only 423.01 points i.e. 0.72 percent. The BSE closed at 58,991.52, up 1,031.43 points, or 1.78 percent, on the last day of FY 2022-23.
Rising interest rates biggest challenge
VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said, “Globally, rising interest rates in the developed world were the biggest challenge during the financial year. A massive rate hike by the US central bank, the Federal Reserve, affected equity and bond prices. While the failure of three banks in the US in March and the crisis in Europe’s Bank Credit Suisse also affected the markets temporarily, although the markets quickly recovered from the shock. Raised the policy rate to stop and stop the capital flow. This affected the stock market. ”The market capitalization of companies listed on BSE reached a record high of Rs 291.25 lakh crore on December 14, 2022. The BSE Sensex hit its one-year low of 50,921.22 on June 17, 2022 and later touched an all-time high of 63,583.07 on December 1 last year.
Reliance Industries most valuable company
During this period, Reliance Industries Limited remained the most valuable company in the country with a market valuation of Rs 15,77,092.66 crore. It was followed by TCS at the second position with a valuation of Rs 11,73,018.69 crore, HDFC Bank at the third position with a valuation of Rs 8,98,199.09 crore, ICICI Bank at the fourth position with a valuation of Rs 6,12,532.60 crore. Hindustan Unilever ranks fifth in terms of market capitalization with a valuation of Rs 6,01,201.66 crore. In the last financial year i.e. 2021-22, the wealth of investors had increased by more than Rs 59.75 lakh crore. During this period, the market capitalization of the companies listed on BSE increased by Rs 59,75,686.84 crore to Rs 2,64,06,501.38 crore.