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Our cover feature in this issue probes this mega IPO boom. Indian bourses have had over 26 new listings since the start of the year, with over Rs 46,000 crore raised so far and still counting.
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All through the low morale that sinking economic indicators brought during a raging pandemic, the equity markets remained buoyant and even though every market analyst has a theory about what kept the markets going, sometimes even they were befuddled. India’s benchmark indices have more than doubled from the pandemic lows of March 2020. The BSE Sensex touched a high of 53,290.81 in July 2021. The NSE Nifty rose to a whopping 15,962.25, from a low of 7,511 in March 2020. Along with High Net-worth Individuals, participation of first-time retail investors in the stock markets is at an all-time high. In this issue we take a close look at this phenomenon and what the near future holds for all stakeholders.
Not only are stocks selling, initial public offerings (IPOs) of new-age companies and startups are being over-subscribed many times over. Who are these zealous investors and what inspires them to bet on ventures that are sometimes barely breaking even? Our cover feature in this issue probes this mega IPO boom. Indian bourses have had over 26 new listings since the start of the year, with over Rs 46,000 crore raised so far and still counting.
Investors are not only subscribing to IPOs but are also making money! According to one estimate, the average number of retail investors subscribing to IPOs has almost tripled over the last few months. Over half the IPOs have given double-digit returns. Domestic mutual funds (MFs) have seen steady inflows from investors. Data from the Association of Mutual Funds in India shows that Assets Under Management (AUM) of the mutual fund industry has grown from Rs 6.73 lakh crore on 30 June, 2011 to Rs 33.67 lakh crore on 30 June, 2021. The average AUM of MFs for June 2021 was reported at Rs 34.10 lakh crore.
Our second cover feature focuses on defence modernization in the backdrop of the challenges the Indian Army faces on multiple fronts, like terrorism at the line of control in J&K and securing the line of actual control with aggressive China in Arunachal Pradesh. Please read the Indian Army Chief, General Manoj Mukund Naravane’s exclusive interview with Manish Kumar Jha. The Indian Army is taking stock of its capability and inducting systems that are a part of new-age warfare. We deep dive into how new-age technology such as Artificial Intelligence is expanding the dimension of modern warfare. We also bring together leading voices from government entities and private enterprises like L&T and BEL on the role the private sector is playing in defence production.
Of course, we also bring to you all our regular columns and features that you look forward to.
Happy Reading!