InvestorQ : How much money did investors actually make in the stock markets in terms of market cap in FY21?
NISHA Nayak made post

How much money did investors actually make in the stock markets in terms of market cap in FY21?

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Priyanka N answered.
2 weeks ago
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As fiscal year 2020-21 came to an end in the month of March 2021, it is time to look back and it is clear that the year clearly belonged to the equity market investors. Equity Investor wealth, as measured by the change in market capitalization of the BSE, grew by Rs.90.82 trillion. During the year, the Sensex jumped 70% and the Nifty grew by 77% on the back of a liquidity driven bull rally in the markets.

If you look at the wealth creation in dollar terms, then it is nearly $1260 billion added to net wealth of Indian equity investors during the year. While the recovery in the Nifty and the India growth story were critical aspects, what actually mattered at the end of the day was that central banks had infused trillions of dollars of liquidity into the system. Most of this money found its way into risk assets like equities and the index benefited in a big way.

During the year, the Sensex crossed the 50,000 mark for the first time and the Nifty scaled above 15,000. The full-year equity rally was driven by index heavyweights but the mid-caps and small caps also participated in a substantial way outperforming the large cap indices in the process.

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