look news india
Mumbai: Although many experts are warning against the current unprecedented boom in the stock market, it can be understood from the data that retail investors and domestic fund houses are ignoring the warnings and investing money in equities.
If we look at the stock exchange data, we find that in the current year, retail investors have invested more than Rs 1 lakh crore in equities so far, while mutual fund investment in equities has crossed Rs 2 lakh crore.
Apart from retail and mutual funds, insurance companies have also invested over Rs 18,000 crore in domestic equities in the current calendar year. Taking advantage of the current boom, banks have made net sales of Rs 9,600 crore, data also shows.
On one hand, retail investors and domestic institutional investors are continuing to buy, while on the other hand, the moves of foreign institutional investors seem to be fluctuating in the current year. It is difficult to know which direction foreign investors are going in. According to depository data, after continuous selling since the beginning of 2024, foreign investors have been net buyers of Rs 30,600 crore in select stocks in recent times.
Despite analysts' view that current valuations of Indian equities are unviable, domestic investors have continued to buy unabated. One analyst said domestic investors have now dispelled the notion that Indian stock markets are run by foreign investors.
As a result of the massive inflow of domestic investors, the benchmark Nifty50 and Sensex touched the levels of 25000 and 82000 respectively for the first time. Despite the fluctuations in the global stock markets, the movement of the Indian market seems to be one-sided.
Although the tax on LTCG has been increased from 10% to 12.50% and STCG tax from 15% to 20%, there has been no decline in the stock market, especially retail and domestic funds, and their acquisitions continue even after the budget.