The Indian stock market has given strong returns in FY 2022 despite geopolitical tensions during the March 2022 quarter. An analysis by domestic brokerage house Motilal Oswal Financial Services shows that the Nifty50 has given a staggering 19 per cent year-on-year return in FY22 and has become the second-best returnee financial year in seven years. .
Heavy selling by foreign investors
Due to the Russia-Ukraine conflict, Foreign Institutional Investors (FIIs) have sold a lot in the Indian stock market. This is mainly because of the rise in crude prices and as India is dependent on imports for 85 per cent of its oil needs, the Indian market has become less attractive. However, domestic institutional investors (DIIs) are continuously supporting the Indian markets. According to a Motilal Oswal report, DIIs made the highest ever infusion of $26.8 billion in FY22, while FIIs sold $17.1 billion after five consecutive years of inflows.
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Which sectors were the top gainers?
Sectoral indices also gave excellent returns during this period. According to the report, “Utilities (63 per cent), metals (62 per cent), media (54 per cent), oil and gas (42 per cent), telecom (42 per cent) and technology (40 per cent) were the top gainers in the sectoral space. On the other hand, the performance of private banks, consumer, auto and healthcare remained weak. In FY22, 37 stocks included in the Nifty registered closing highs.
These stocks have gained momentum
If we look at the stocks, Bajaj Finserv, Hindalco Industries, Titan Industries, Tata Steel and ONGC were the top performers. On the other hand, HDFC Life, Hero MotoCorp, Shree Cement, BPCL and Hindustan Unilever were the weakest performers.
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Now the effect of the results will be seen on the market
Financial year 23 has started and now the results of companies will be a key factor in terms of giving direction to the market. The March quarter data for FY22 will reveal the impact of the Russia-Ukraine crisis on the margins of crude-based raw material-dependent companies.
The results season for the fourth quarter of FY22 will begin with the results of IT giant TCS on April 11.