Dalal Street investors became poorer by Rs 5.86 lakh crore in 2022-23 fiscal as the equity market faced a tough time in view of plenty of negative triggers such as high inflation, geopolitical conflicts and higher interest
rates.
The domestic stock market encountered many headwinds this fiscal such as high inflation, the Russia-Ukraine war, higher interest rates, foreign fund outflows and the recent global banking turmoil.
“In FY23 we have seen events of decadal high inflation, aggressive monetary policy stance by global central banks w.R.T interest rate hikes, banking crisis in US and Europe, and continuing Russia-Ukraine war,” said Srikanth Subramanian, CEO of wealth management company Kotak Cherry.
Amid the sluggish trend in equities, the market capitalisation of BSE-listed companies fell by Rs 5,86,605.38 crore to Rs 2,58,19,896.00 crore in the entire 2022-23 fiscal.
The main issue facing equity market in FY23 was inflation, which resulted in the increase in interest rates around the world and lowered investor sentiment, said Parth Nyati, Founder of online stock trading app Tradingo.