Bull Rally: Retail investors dominated D-Street in SAMVAT 2077 with 45% of cash transactions

Samvat 2077 has been a landmark year in the history of Indian equity market in so many ways. The past one year witnessed one of the longest bull market rallies, which is likely to continue next year.  

In the past one year, market capitalisations of companies listed on BSE and NSE grew significantly. For instance, the m-cap of companies listed on BSE increased from Rs 1,62,27,243.78 crore to Rs 2,65,00,311.38 crore.   

According to data available on Stock Edge app, which analyses BSE as well as NSE-related data, the domestic stock market indices also made gains like never before with benchmarks Nifty50 and S&P BSE Sensex registering a whopping 50.5% and 47.9% jump respectively in the last one year. 

Sectorally, metal, PSU Bank and realty stocks surged the most. Data on Stock Edge show that Nifty Realty grew by 142.8%, Nifty Metal (139%) and Nifty PSU Bank (122.2%). On BSE, data shows indicate that S&P BSE Metal grew by 146.4% and S&P BSE Realty gained 145.3% in the last one year.  

Similarly, Nifty Bank clocked 40% gain, Nifty Midcap 100 and Nifty Smallcap 100 gained 70.4% and 81.5% respectively between November 13, 2021 and November 2,2021, showed a Zee Business TV data.   

Notably, retail investors dominated the D-street last year with increased participation. According to VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, retail investors now account for 45% of cash market transactions.   

In the last one year, the registered investors base rose by over 50% With 2,90,29,214 registered investors on BSE so far this year, the registered users on BSE witnessed a jump of 51.46% as against the last year, while a significant jump of 12.30 per cent was also seen in quarterly figure.  

Till November 5, 2021, total registered investors on BSE stood at 8,54,34,954, showed BSE historical data.

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Commenting on the recent bully rally and the role played by retail investors, VK Vijaykumar further said: "Retail investors are buying enthusiastically everything that FIIs are selling. This is evident from the fact that big FII selling of Rs 11308 crore in July and 13550 crore in October did not impact the market. In brief, retail investors are the dominant players in the market now.” 

However, he cautioned retail investors on the continuity of the present bull run. 

“We don't know how long this will last since valuations are stretched and many foreign brokerages have downgraded India on excessive valuations," he added. 

(Disclaimer: The views/suggestions/advices expressed here in this article are solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)