Investors richer by over Rs 11 lakh crore in 2019 market rally

As the Indian equities signed off 2019 on a remarkable note, the m-cap of BSE-listed companies rose by Rs 11,05,363.35 crore to Rs 1,55,53,829.04 crore.

Investors became richer by over Rs 11 lakh crore in 2019 helped by a stupendous rally in the stock market where the benchmark Sensex clocked over 14 per cent gains on an annual basis.

As the Indian equities signed off 2019 on a remarkable note, the market capitalisation (m-cap) of BSE-listed companies rose by Rs 11,05,363.35 crore to Rs 1,55,53,829.04 crore.

"The year 2019 was definitely an eventful one for the markets as a number of crucial events unfolded on both global as well as domestic front.

“The global growth outlook turned positive led by US Fed dovish stance and easing trade tensions between the US and China.

"On the domestic front, while worries persist on growth revival, the recent government measures have increased hopes to faster recovery.

“Overall, it has been a good year for Indian equities despite the slump in domestic growth," Ajit Mishra, VP research, Religare Broking said.

On an annual basis, the Sensex rose 5,185.41 points or 14.37 per cent.

The Sensex on Tuesday ended the last trading session of 2019 304.26 points or 0.73 per cent lower at 41,253.74.

About major takeaways for markets this year, Mishra said, the year has been quite peculiar for India as on one hand growth continued to slump, however stock market rose to new highs.

This is due to outperformance of select heavyweight stocks that remained least affected by the on-going slowdown.

"Therefore, the major takeaway is that in times like these where overall growth is struggling but global markets are buoyant, it is better to stick to quality names that has remained unaffected by the slowdown," he added.

In 2018, the Sensex had risen 2,011 points, or 5.9 per cent.

The market capitalisation (m-cap) of the BSE-listed companies had slumped by Rs 7,25,401.31 crore to Rs 1,44,48,465.69 crore last year.

"There has been a clear divide in the economy and markets this year that has prevailed in many markets, including India.

“We expect the divide between Indian equities and economy to continue in CY20 because there may not be a quick recovery in the economy but market may do relatively better on account of strong earnings and favourable tax changes," Rusmik Oza, Sr VP (Head of Fundamental Research-PCG), Kotak Securities said.

Markets achieved big milestones this year, with the BSE Sensex crossing the historic 40,000 mark while the broader NSE Nifty conquered 12,000 level.

The Sensex zoomed to its record peak of 41,809.96 on December 20 this year.

Reliance Industries Limited is the country's most valued firm with a market valuation of Rs 9,59,818.81 crore.

TCS comes second in the ranking of companies based on their valuation followed by HDFC Bank, HDFC and HUL in the top five list.

In November, Reliance Industries became the first Indian company to hit the Rs 10 lakh crore market valuation mark.

At market close on November 28, the oil-to-telecom conglomerate's market valuation zoomed to Rs 10,01,555.42 crore on BSE.

This year, a total of 16 main-board initial public offerings (IPOs) mopped-up Rs 12,365 crore.

About next year, Oza said, "High expectations from the budget could lead to a good start for Indian equities in 2020.

“To address the global slowdown we expect central banks in the developed nations to follow a loose monetary policy in CY20.

“This could provide ample liquidity and scope for further flows into emerging markets."

"We expect scenario to improve with a broad-based rally as economic concerns subside gradually," Mishra said.