Investors' wealth surges by Rs 128 lakh cr in Samvat 2080, Gold gives 32 pc return

As the Indian stock market ended Samvat year 2080, investors' wealth surged by a whopping Rs 128 lakh crore (about $1.5 trillion at current exchange rate) to Rs 453 lakh crore in just one year.

This made Samvat 2080 the biggest wealth-creating year on record, banking upon a stable government, strong fundamentals s and record inflows by domestic funds which was at Rs 4.7 lakh crore.

The National Stock Exchange (NSE) saw its investor base crossing 20 crore. Amid strong interest from retail investors, 336 companies made their stock market debuts in Samvat 2080 — with 248 coming from the SME segment.

Nearly 100 of these IPOs have launched with listing gains exceeding 50 per cent and 163 IPOs are currently trading above their issue prices, as per industry data.

Samvat 2080 also saw significant growth in the prices of gold and silver, with both precious metals delivering returns of 32 per cent and 39 per cent, respectively. This can be attributed to three key global factors -- geopolitical tensions, US presidential election and global interest rate policy.

The mutual fund sector saw its total assets at about Rs 68 lakh crore, with systematic investment plan (SIP) investments nearing Rs 25,000-crore mark.

The new Samvat or Hindu New Year begins at the time of Diwali. During this time, many investors believe that trades made during Muhurat draw prosperity for the year ahead.

According to market experts, with Nifty returning 25 per cent and Nifty 500 returning 30 per cent in Samvat 2080, investors should be happy.

But the 6.2 per cent correction in October, the first above 5 per cent correction in 54 months, has triggered anxiety over the market performance, going forward.

Of serious concern is the relentless FII selling in October amounting to Rs 113,858 crore through the exchanges.

Given India’s elevated valuations and concerns over deceleration in earnings growth, FII selling might continue, impacting the benchmark indices. In such a scenario investors should focus on stock-specific investment where Q2 results have been good and earnings visibility is bright, said experts.

Jateen Trivedi from LKP Securities said the US election next week is expected to be a decisive factor for gold’s trend, with market participants closely watching its outcome for further direction.