The share market sank into a COVID abyss when the lockdown was announced in late March 2020, the whole world came to a standstill. We would ever be able to the new highs was unthinkable.
- New COVID cases are going down in India, which is a positive sign, and expectations from the upcoming Budget 2021 are boosting sentiment. The budget was one tool by which the Government could lay the foundation of a long-term economic growth path.
- The COVID scenario helped everyone to realise that savings were much more valuable than luxury and high lifestyle.
- With the failure of delivering of most of the estate developers (builders) the market sentiments of the investors took a toll. They became apprehensive to invest in the property sector.
- Therefore the surplus money that public had to be invested somewhere flowed into the share market. The lockdown couldn’t have played a better part where investors got more time to study their portfolio and execute the trade themselves.
- Another perspective came to the forefront that all the sales personnel, commission agents, even the estate brokers whose job were lost due o COVID got themselves involved in share market sector where most of the work could be done from home. According to the Securities and Exchange Board of India (SEBI), close to 6.3 million new demat accounts were opened in the last nine months, tallying the total count to 44.46 million.
- Not only the people living in metros were encouraged to enter the share market but the trend saw fast-moving from metros to Tier II and III cities. The increasing number of demat accounts in non-metros reflect deeper penetrations of equity markets.
- Not to talk of the scenario in our country, throughout the world there is seen a global surge in liquidity, facilitated by a loose monetary policy, and at least some of that money is flowing into India.
- Foreign institutional investors (FIIs) bought around $23 billion of Indian equities in 2020, the highest across emerging markets. That could continue through 2021. And companies (at least the good ones that happen to be in sectors that are reviving fast) are expected to do better too. ICICI Bank, HDFC Bank, L&T, IndusInd Bank, Reliance Industries (RIL) and ITC contributed the most to the S&P BSE Sensex’s gains.
With the crossing of 50000 Sensex mark once again the market sentiments are rising with a hope to see much more growth they have seen in the past. No doubt everybody is waiting to take the benefit of exponential bouncing back of the economy.
Once upon a time India was ruled by the Britishers and all over the world the monopoly of America was not a new phenomena. But the time has come when India is emerging as a powerful nation whose people are chosen to command in UK as well as American Parliament. After the worldwide devastations brought about by China, . Days are not far away when India will become the greatest economy and rule the world.