2022 in retrospect
Equities – A year of consolidation The Indian equities consolidated the gains made during 2021 and are ending the year 2022 with marginal gains; unlike other major global markets which gave up most of the gains made during the year 2021. Considering the global economic, geopolitical and financial conditions this is a remarkable performance. The benchmark Nifty50 and Nifty Midcap 100 are ending the year with ~5% gain; though Nifty Small 100 has lost 2022YTD 11%. The market breadth has been marginally negative; and volumes below average. Nifty has now given positive returns in 9 out of the previous 10 years; with 2022 being the seventh consecutive year of positive return. Nifty averaged 17240 YTD2022, 8% higher than the average of previous year. This implies much better returns for the SIP investors. For long term buy and hold investors, five year rolling CAGR in 2022 is ~11.6%, which is close to 2016-2022 average. Five year absolute Nifty return in 2022 is ~73%, also close to 2016-2...