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Why Indian Stock market is in the bull run even in Recession 2022

Why Indian Stock market is in the bull run even in Recession 2022
December 07, 2022

India is the second fastest-developing economy in the world. The amount of growth and scope that our economy has showcased over the past few years has been commendable. This has attracted investors from different parts of the world. Many foreign investors coupled with Indian investors have made our stock market a bull run. The stock market has come a long way and has an underdog history, to say the least. Our economy has been at a steady bull run even during the recession period of 2022. What was seen as the bear run of many stock markets all over the world, has not had an impact on our stock market. India has already been chasing a close-cut target with markets and with our steady growth in these tough times, we might have a chance at surpassing them entirely. 


The simple process of stock market trading is buying and selling stocks of different companies on a portal called the stock exchange. The companies whose shares are available for sale and purchase are listed companies. Once an Indian company is public, it can be listed on the stock exchange. This can be done by inviting the public to purchase shares of the company through an Initial Public Offering (IPO) or Follow-on Public offer (FPO). Thus, this gives way for the public to become part owners of the company. This also opens the doors to online trading of the company’s shares and provides the gateway for previous shareholders to sell and for new shareholders to purchase the shares. 


The Indian stock market is currently considered one of the best-performing markets in the world. The key bourses include the National Stock Exchange (NSE) and Bombay Stock exchange (BSE), most of the transactions are aimed toward them while the other smaller bourses do not see many inputs. NSE is currently one of the fastest-growing stock exchanges in the world and has become the world’s third-largest stock exchange over time.   


The whole process of a stock exchange includes a transaction fee charged by the stock exchange. These investments have multiple sources and some of the indirect sources can be mutual funds and Exchange Traded Fund (ETF). 


The Indian stock market is thriving, and the factors are manyfold. These factors have emerged from various developments in the economy over the past ten years. Some of the key factors include: 


Many people notice the company’s failures, and how the average pace and growth have remained stable. New companies emerged and failure or success has been a constant battle these companies fight, however, the clear winner is the stock market. 


Growth of technology and production has been phenomenal over the past few years. This has given birth to a new and improved company structure. India is on its way to becoming a self-driven economy. 


The past few years witness the work of new economic policies and how they are driving India toward steady growth. One of the key examples of the same is the ‘make in India’ scheme. Many foreign companies had opened factories in India, and employment and stock rates were thriving. 


Emergence of start-ups and sudden growth in start-up numbers originating in India. These start-ups are now renowned globally, and the past year has seen over twenty-one start-ups that have joined the unicorn club. 


Remarkable IPOs have created a new trend of start-up IPOs in the stock market. Nykaa, Paytm, and LIC showcased an IPO opening like no other. 


The bull run of the stock market has motivated many new changes in our swiftly driven economy. The impact has been on all sectors ranging from IT, retail, and manufacturing to freelance hiring, contract jobs online, and bench recruitment. The sectors have been able to identify the need and understand what it would take to make it to the stock exchange market and eventually make one’s IPO a success. 


Most of the IPO successes in the past year were start-ups that had Indian origin. The pandemic pushed back many companies and slowed their growth down. However, it was a blessing in disguise for start-ups like Big Basket, Zepto, Meesho and Groww. They have managed to create a brand and invite investments from different platforms all over the world. The start-up market thrived like no other and now most of these start-ups are moving towards their first IPOs or have already bagged an IPO success in the market. While we see India as a start-up-driven economy, the question as to why this success has come our way now and not earlier remained constant. The answer to the same is the technological growth of the season, which has changed the course of operations. Additionally, start-ups have adopted modern work techniques to cut costs like providing employee stock ownership programs and freelancing their projects in India by pairing up with flexi recruitment services. Thus, the start-up industry is the best example of how and why they thrive in stock markets. Following their route, many other stock market leaders have adopted these changes and switched to flexible hiring and have made a comeback in the market. 


The new trouble for stock market growth is the recession. While the Indian stock market has performed well in 2022, 2023 has been feared by many.  However, based on predictions the Indian stock market is predicted to see a growth rate of 14% in 2023. In fact, the second half of 2023 will be a time for the market to thrive to its best due to private projects that are currently in implementation. 


Seeing these predictions and past performances of India’s stock market it is safe to say that we have been on a bull run for the past decade and the same is not going to be hindered by small ups and downs caused by the banks. The economy is set at a steady pace for the coming since we are not set to be directly impacted by the recession itself. From the perspective of many economists, the coming period is going to be a blessing in disguise for the Indian stock market. 


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