The Economic Survey 2021-22 lists out the growth and development in capital markets with respect to the rising of benchmark indices to surge in initial public offerings to inflows of foreign investors. In this, the Indian markets had made stupendous year-on-year growth between April-December of FY22. 

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The survey states, “The benchmark indices in India - Sensex and Nifty50 - jumped by 17.7 per cent and 18.1 per cent, respectively, during April-December 2021. Driven by good corporate earnings, sharp rise in COVID-19 vaccination and opening-up of businesses across the country.” 

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The Sensex and the Nifty50 scaled to touch their peak at 61,766 and 18,477, respectively, on October 18, 2021.  

It added, “Among major emerging market economies, Indian markets outperformed its peers during the said period. Among the select developed markets, S&P 500 index and NASDAQ Composite index, recorded strong gains and rose by 20 per cent and 18 per cent, respectively.” 

The survey mentioned that the year 2021-22 so far has been an exceptional year for the primary markets with a boom in fundraising through IPOs by many new-age companies/unicorns.  

“In April-November 2021, IPOs of 75 companies have listed, garnering Rs 89,066 crore, as compared to 29 companies raising Rs 14,733 crore during the same period a year ago, indicating a stupendous rise of 504.5 per cent in fund mobilization,” according to the survey. 

The money raised by IPOs in 2021 has been greater than what has been raised in any year in the last decade by a large margin, it economic survey document pointed out. Adding further the overall Rs 1.81 lakh crore have been raised through equity issues through diverse modes such as rights, QIP, public offerings and preferential issues. 

Similarly, Foreign Portfolio Investors made a net investment of Rs 24,124 crore in Indian securities, 82.8 per cent lower than what was made in the same period previous year during April-November 2021. The cumulative net investment by FPIs increased by 9.2 per cent to US$288.4 billion as of November 2021, from US$ 264 billion at the end of November 2020, the survey said while pointing out the data. 

Meanwhile, the net Assets Under Management (AUM) of the mutual fund industry rose by 24.4 per cent to Rs 37.3 lakh crore at the end of November 2021 from Rs 30 lakh crore end of November 2020, the survey said. It added, “Net resource mobilization by mutual funds was Rs 2.54 lakh crore during April-November 2021, as compared to Rs 2.73 lakh crore during April-November 2020.