NEW DELHI: Indian capital markets have outdone numerous major global markets, including certain developed ones such as the US and the UK along with developing markets like China and Brazil, with double-digit returns in the financial year ending in March 2019. The performance of the market has been despite numerous global and domestic headwinds. The Indian market benchmark also improved on their own performance in the previous FY, with the sensex (17%) giving relatively better returns than the NSE’s Nifty (15%) in 2018-19.
Furthermore, mutual fund assets under management have grown by 11.4% to approximately Rs 24 lakh crore and FPI asset under custody grew by 8.6% to nearly Rs 30 lakh crore. This is despite the fact that 2018-19 was relatively a difficult and challenging year on account of global and domestic headwinds.
Fund-raising from the capital markets also continued its positive trend during 2018-19, with funds raised through debt and equity rising by 5.3% to nearly Rs 9 lakh crore. The double-digit returns came despite certain negative developments since September 2018, particularly on the front of fixed-income securities.
On mutual fund front, debt-oriented funds witnessed net outflows on account of several developments in debt market since September 2018. But, equity-oriented mutual funds continued to receive positive net inflows during all months between 2018-19 and other mutual funds received positive net inflows in 10 out of 12 months of the FY.