Ajay Tyagi said that the stock market has improved on a large scale and the stock market is not dependent only on liquidity and low interest rate for recovery.
The stock market regulator Securities and Exchange Board of India (SEBI) chairman Ajay Tyagi has made a big statement amid criticisms that there was no coordination between the stock market and the economy. At the CII Financial Markets Summit, he said that the stock market has improved massively and that the stock market is not dependent on liquidity and low interest rates only for recovery. He said that after reaching its lowest level in March 2020, not only large-cap stocks have improved, but also mid-cap and small-cap stocks have improved.
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Ajay Tyagi said that all the IPOs and rights issues have been subscribed this year and Rs 22,000 crore IPOs are still in the pipeline. He said, SEBI in its analysis found that this year not only high-priced stocks, but medium and low-priced stocks have given B-positive returns. He said that the large-cap and mid-cap indices have gained 55% since March, while the small-cap index has risen by 70%. This year, 40 to 50% of the stocks in each category (large cap, mid cap and small cap) have outperformed the previous year.
75% shares gave better returns on BSE
Ajay Tyagi said that 93% of the shares traded on the National Stock Exchange (NSE) have given positive returns in this financial year. At the same time, more than 75% of the stocks traded on the Bombay Stock Exchange (BSE) have given better returns than last year. He said that this year the participation of investors in the equity market was the highest in the history so far. He said that the average daily turnover in the cash market in this financial year was Rs 60,000 crore, a 54% increase from the previous year. The average daily turnover of the stock market last year was Rs 39,000 crore. Also, the average turnover of equity derivatives this year is 27% higher than last year.
1.47 Lakh Crore Investment in Mutual Funds
SEBI chairman said that 63 lakh new demat accounts were opened in the first half of FY 2020-21. Whereas, in the same period last year, the figure was 27.4 lakhs. In this way the number of demat accounts has increased by 130%. At the same time, Foreign Portfolio Investors (FPIs) have invested $ 11 billion in the Indian market. He said that in emerging economies such as Brazil, Taiwan, South Korea, Thailand, South Africa and Malaysia, there has been an outflow of FPI, while there has been a record increase in FPI investment in India. He said that Rs 1.47 lakh crore has been invested in Mutual Funds so far this financial year.
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