The BSE-Sensex has risen by about 14.7% since last year's mahurat trading session. Stocks from the information technology, healthcare and FMCG spaces have been the top performers with their respective indices rising by about 55%, 27% and 20%. As for the top under performers, realty (down 34%), PSU (20.5%) and power (20.2%) led the pack.
Midcaps and smallcaps have however not found favour. While the BSE Mid Cap declined by about 9%, the BSE Small Cap Index fell by a sharp 18%, thereby underperforming their larger peer significantly.
Higher foreign institutional investor (FII) participation has been a big reason for market run up in the past few months. In Samvat 2069 (Hindu calendar), FIIs have invested about US$ 21.9 bn. In the preceding five years, the figures were US$ 12.4 bn, 0.96 bn, 31.9 bn, 13.4 bn and -12.1 bn respectively, starting from Samvat 2068 and backwards. The average of these figures comes up to US$ 9.3 bn. As such, as compared to the average, FIIs interest has been quite substantial in the hindu calendar year gone by.
What the forthcoming hindu calendar will be like is anyone's guess. But with many major events lined up including the general elections, and the possible tapering by the Fed, it is likely to bring about a good amount of volatility during times surrounding these events; especially considering how big these events are from a foreign investors' perspective.
All we can say is keep searching for solid companies that you would like to buy and take advantage of the situation if and when market situation becomes jittery.