Half yearly report card: Investors’ wealth soars by Rs 42,00,000 crore so far in 2021

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Equity investors on Dalal Street have grown richer by Rs 42,00,000 crore in the first six months of the ongoing calendar year. Aiding the ongoing rally in the domestic equity market, the benchmark BSE Sensex has jumped 4,731 points, or 10%, to 52,482 on June 30 from 47,751 on December 31 last year. Meanwhile, the index scaled its lifetime high of 53,126 on June 28.

The market capitalisation of BSE-listed firms jumped to around Rs 230 lakh crore from Rs 188 lakh crore on December 31.

A couple of factors including the ramp-up of vaccination supported the domestic equity market despite uncertainty over the Covid-19 pandemic. Jay Prakash Gupta, founder, and director, Moneylicious said, “Lower interest rates, robust liquidity, normal monsoon, impressive corporate earnings and gradual reduction in Covid cases supported the rally.”

Going ahead, analysts retained their bullish view on the domestic equity market. ICICI Securities upgraded earnings estimates to the tune of 7.5% with Nifty EPS now expected to grow at a CAGR of 24.20% in FY21-23E.

“Assigning the same PE multiple of around 22x to FY23E earnings, our resultant Nifty target is at 17,500 with equivalent Sensex target at 58,300; offering a potential upside of 10%,” ICICI Securities said.

With a rally of over 210%, Adani Enterprises emerged as the top gainer in the large-cap space. Adani Transmissions, Tata Motors, Tata Steel and JSW Steel have also gained over 50% during the first half of 2021. In the broader space, more than 400 stocks doubled investors’ money this year so far. Shares of Adani Total Gas jumped over 200% YTD in the midcap space. Indian Overseas Bank, Adani Power, and JSW Steel also gained up to 150%.

While giving his advice to investors, Prashant Jain, Chief Investment Officer, HDFC Mutual Fund said, “Indian equity market is fairly valued despite the ongoing bull run. oil and gas PSUs, power utility and engineering companies continue to be undervalued while consumption stocks as extremely expensive.”