Nifty's FY22 returns are 2nd best in the past 7 years
DII inflows into stocks have been the biggest ever in FY22
In FY23, company earnings will be one of several variables influencing market sentiment. The March quarter results for FY22 will shed light on the impact of the Russia-Ukraine situation on the profitability of enterprises that rely on crude-based on natural resources.
Considering geopolitical uncertainty in the last months of FY22, the Indian equities market delivered strong gains in the financial year 2022. According to a report by local trading firm Motilal Oswal Financial Services, the Nifty50 gained 19 percent year on year in FY22, finishing the fiscal year with the second-best gains in seven years.
Foreign institutional investors (FIIs) abandoned Indian equities following the deepening of the Russia-Ukraine war, as the crude oil-led macro and micro effect made Indian stocks less appealing. Nonetheless, domestic institutional investors (DIIs) stepped in to help. DII inflows into stocks were the biggest ever in FY22, at $26.8 billion, compared to outflows of $18.4 billion in FY21, while FIIs saw equity outflows of $17.1 billion after five years of inflows.
According to the Motilal Oswal report
Sector-specific indexes performed well as well over this period. "Utilities (+63 percent), Metals (+62 percent), Media (+54 percent), Oil & Gas (+42 percent), Telecom (+42 percent), and Technology (+40 percent) were the top acquirers in the industry. Private banks, consumer goods, automobiles, and pharmaceuticals all lagged "the report was appended In addition, market breadth improved in FY22, having 37 Nifty components performing better.
The top-performing stocks were Bajaj Finserv Ltd, Hindalco Industries Ltd, Titan Industries Ltd, Tata Steel Ltd, and ONGC. HDFC Life Insurance Company Ltd, Hero Motocorp Ltd, Shree Cement Ltd, BPCL, and Hindustan Unilever Ltd, on the other hand, were the top laggards.
Broad-based markets performed admirably as well. The Nifty Midcap 100, which was up more than 25% year on year, and the Nifty Smallcap 100, which was up and over 29% year on year, outpaced the new standard in FY22, according to the data.
Nevertheless, in FY23, corporate profits will be one of several factors determining market sentiment. The March quarterly profit for FY22 will shed insight on the influence of the Russia-Ukraine situation on the margins of firms that rely on crude-based rare metals.
