nifty: Throwback! D-St bulls caught in rollercoaster ride after peaking in 2021

Mumbai: October 19 was somewhat symbolic for traders on Dalal Street as the benchmark indices Sensex and Nifty50 hit lifetime highs on the same day last year.

On October 19, 2021, Nifty50 and Sensex hit lifetime highs of 18,604.45 points and 62,245.43 points, respectively.

Since then, stocks have been on a rollercoaster ride, with indices even testing 52-week lows earlier this year.

On Wednesday, Nifty 50 closed up 0.1% at 17512.25 points and Sensex at 59107.19 points, up 0.3%.

Nifty50 and Sensex are down more than 5% from their highs.

During the January-October 2021 period, both Nifty50 and Sensex posted more than 30% gains, but over the same period in 2022, they barely managed to gain just 1%.

Indian equities’ stellar gains over the past year and outperformance of their peers raised questions about overvaluation at a time when the US was still struggling with high inflation and the risk of aggressive US Federal Reserve rate hikes.

Factors such as global macro concerns, Omicron, Russia’s invasion of Ukraine, skyrocketing oil prices, aggressive rate hikes by global central banks, higher US bond yields and the multi-year high beating the dollar eroded stock market euphoria.

These headwinds sparked record sales of $24 billion by foreign institutional investors in 2022.

14 of the 30 Sensex stocks have posted negative returns over the past year. Information technology stocks were the biggest laggards.

However, Indian equities managed to navigate the rough waters and showed strong resilience compared to their emerging and developed market peers.

Despite the volatile markets, some of the index stocks have outperformed

, Mahindra & Mahindra and .

ITC shares have yielded the maximum return of about 38% over the last year.

At a time when stocks in most major emerging and developed markets are expected to end 2022 with negative returns, India is widely expected to be an outlier.

(Data input by Ritesh Presswala)

(Disclaimer: Experts’ recommendations, suggestions, views and opinions are their own. These do not represent the views of Economic Times) nifty: Throwback! D-St bulls caught in rollercoaster ride after peaking in 2021

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