Last year Indian companies' market capitalization has grown at the fastest pace among major economies in spite of contraction in GDP, according to economists from SBI.
Further, retail investors have shown higher interest in markets and their numbers have increased by 1.42 crore in FY21 and another 44 lakh in April and May, they said in a note, wondering if this will be a lasting behavioral change or is transitory.
The economists at SBI attributed the growth in equity markets to lower returns on other financial instruments amid a low rates regime, increase in global liquidity, and even a tendency to spend more time at home because of mobility restrictions which led many to trade more.
The 30-share benchmark index BSE has rallied from 28,000 points in early April 2020, to over 52,000 points at present.
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