The Indian benchmark index Nifty 50 on Friday (31/12/2021), opened around 17,200, touched 17,400 which was a resistance zone and finally managed to close above 17,350.
FII/DII 2021: FIIs were net sellers in December also. They sold more than 35,000 Cr but thankfully the DIIs have supported the market by buying more than 31,000 Cr. In the last 3 months alone FIIs have sold for more than 1 Lakh crore, which is really huge. FIIs were net sellers in 2021 and they have sold more than 91,000 Cr and the DIIs have bought more than 94,000 Cr. The FIIs were net buyers only for 4 months.
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Market - 2021: In the year 2021 the index Nifty 50 gave 24% returns. A person who has invested in an index fund would have made a good amount of money (If you want to know about the index fund just mention it in the comment section at the end of the post). Nifty made a high of 18,600 in that year. We cannot expect this kind of return in 2022 and for the next few years, let's discuss it in the next section. In the later part of the year Nifty fell around 10% due to FII selling, but anyway in the last week of the year it recovered slightly and closed above 17,350.
Now let us compare the returns small, mid and large-caps with Nifty 50,
- Nifty 50: 24%
- Large-caps: 21%
- Mid-caps: 37%
- Small-caps: 59%
Just remember one thing that small-caps can also
give "-59%" returns also. If you are new to investing
just stick to exchange-traded index funds (If you want to know about the index fund just mention it in the
comment section at the end of the post).
Market - 2022: In 2021, Nifty 50 gave 24% returns because in 2020 the market crashed. As the fall was so deep and sharp the market just shot up after the fall. We can expect 10-15% returns from Nifty 50 in 2022. India VIX closed around 16 on the last day of the year so we can expect Nifty 50 to shoot up 16% or fall 16% but I feel such a fall is unlikely in 2022.
The main things we must look into this year are,
-
Budget
- 5 state elections
- FII participation in the market
- RBI Monetary Policy meetings
Historically, every year just before the budget there
was a small fall in the market. So in the 3rd or 4th week of January, we can expect a slight fall in the market. RBI might increase interest rates this year.
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Top brokerage picks for CY 2022:
ICICI Direct
HDFC securities
"Happy new year!"
"Have a profitable year"
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