Here in New Delhi: Several domestic listed stocks have bestowed investors with an elixir in terms of multi-bagger returns as India celebrates 'Azadi Ka Amrit Mahotsav' in the 75th year of its independence.
As many as 40 stocks across the sectors have rallied 100-425 percent since the last Independence Day, rewarding the investors, the data from Ace Equity suggests.
Despite the inflationary pressure, strong FII pullout, depreciating rupee, rising crude oil prices, and interest rate hike a business.
It is followed by small cap IT solution provider 3i Infotech, which has gained 410 percent during the period to Rs 40.7 from Rs 7.99. However, the stock has gone through capital restructuring which slashed 90 percent of its share capital.
Market experts have been juggling across the sectors and how to make most of the volatile period. The majority of experts have remained positive on consumers, financials, and chemical space, with IT being the least preferred bet.
In an interview with ET Now, Jitendra Arora, Executive Vice President, ICICI Prudential, said that IT is the biggest sector that is leveraged to the global demand. " We have been underweight on IT for some time and continue to hold the view."
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Amid fears of economic degrowth and recession, market analysts remain positive about India and domestic stock markets. They believe that markets are poised to continue their rally in the years to come.
" The rally is likely to sustain 18,200-18,300 as flows start returning to India, says Harendra Kumar, MD, Institutional Equities, Elara Securities India. "We do not doubt that India will be the top performing market in emerging markets."
The Indian capital market has seen a paradigm shift in the last decade, be it in terms of technology in the payment and settlement systems, improved regulatory mechanisms, or modern market infrastructure. According to Padmaja Chunduru, MD & CEO, National Securities Depository (NSDL), the Indian capital market as well as the stock market is far ahead of the curve, and startups should consider listing their companies in India or float a part of the share in the country.
Citing the example of the T+1 stock settlement mechanism, she said that India is set to become only the second country after China to move to this settlement mechanism by October this year. Most of the countries in the world, including the United States, follow the T+2 settlement cycle, which means securities transactions settle within two business days of their transaction date.
“The top 500 companies will come on the T+1 mechanism by October this year and this is happening seamlessly. There is no pledge and this is happening through the exchanges, depositories, and settlement clearing system,” says Chunduru, while speaking at Fortune India's 40 Under 40 Awards today.
The veteran banker further states the successful handling of LIC IPO, the largest in India's capital market history, further validates the credentials of the Indian capital market. “The numbers were handled very smoothly, which was considered a stress test for the capital market,” she says.
Speaking about the startup ecosystem in the country, she says the central and the state government are doing a lot for nurturing new businesses in India. “There are a lot of policies and under current policies that are enabling the system. On the periphery, we see the success of startups or unicorns that keep on increasing, and hopefully it would touch 1,000 startups a year.”
Currently, there are more than 100 unicorns and 76,000 startups in the country as compared to just 100 odd startups four years ago.
Chunduru, who had previously worked with the State Bank of India for more than three decades, urged startups to list their ventures in India or float a part of their businesses in the country to support the economy. She said that under the new Reserve Bank of India (RBI) guidelines, startups are being offered loans of as much as ₹50 crores under the priority sector, which would help businesses to grow. She also talked about GIFT City, designed to be at or above par with globally benchmarked businesses, which would offer a competitive edge to financial services and technology firms.
Chunduru says that companies are going global nowadays and they are representing India on a global stage. “I think coming from an emerging market perspective, whatever the startup or entrepreneurs do, good or bad, is amplified and magnified across the world. And investors are watching every move of the country."
Talking about the recent success of the startup industry in India, she says that a lot is going on in the ecosystem, and any negative development around it, be it accounting irregularities, ethics, or governance, which we can do without, can be very costly at this stage of development.
At a crucial time when the country is witnessing real outflows in terms of capital by foreign portfolio investments (FPIs), the businesses must stick to financial discipline, she says. The recent monetary policy tightening by the Federal Reserve in the backdrop of soaring inflation and the Russia-Ukraine war have prompted foreign investors to withdraw money from emerging markets like India. The only thing that limited losses for the Indian share market and the rupee were the continued support by retail investors. The domestic investors remained bullish on the economy during this difficult time which was unprecedented in the stock market history, she adds.
Responding to a question related to NSDL’s plan to reduce charges for Demat accounts, she says, “Yes. As the numbers are increasing and even SEBI is looking at the final cost for the investors. I think that’s been our focus and I am sure you will very soon be happy to get that information.”
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The underperformance of China is beginning.
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