MARKET FLASHBACK OF 2020

 

The Indian stock market had a phenomenal rise in the yea 2020 during the COVID 19 time. The year started on positive note as in January 2020 the FII invested Rs. 12000 crore and the stock market touched all time high of 42270 on 20^th January 2020. In February 2020, they continued buying and invested around Rs. 10,000 crore. But March 2020 world over COVID 19 had spread and thus the world economy had huge problems so as the FII with draw Rs. 61000 crore from Indian stock market, the BSE SENSEX fell from 42270 to 25600 levels which was around 38 % correction in one month. But in April 2020 when the FII saw that lock down was implemented strongly by Indian Government their selling reduced to Rs. 1800 crore only. This was the time when the valuations of the Indian markets became very attractive and thus FII started buying from May 2020 onwards.  In may 2020 they bought shares worth Rs. 14,500 crore, in June 2020 they bought shares worth Rs. 20,900 crore. In November 2020 FII invested Rs. 68,000 crore while in December 2020 they invested Rs 45000 crore.

During Covid 19 SEBI made E KYC for the retail investors that is they could open the new trading and demat account from their homes without visiting the broker office. This facility of E KYC allowed around 45 lakh new trading and demat accounts to be opened. The mutual fund SIP that is systematic Investment Plan has been monthly flow of Rs. 7500 crore per month.