In a few days, the year 2022 will officially come to an end. It should come as no surprise that it has been heavy and heavy. There were traces of sadness and good news.
Concerns about inflation, rising oil prices, rising interest rates, falling value of IT stocks, and other issues followed.
To recall, on February 24, just as the world economy began to slowly recover from a two-year pandemic, Russia went to war with Ukraine, dashing hopes of the optimists and the pessimists of economic recovery. Everyone, from analysts to new investors, is shocked by the war’s ability to slow down economic progress.
Here we detail a few of this year’s big themes that were expected to do well but didn’t:
At that time, the RBI issued a circular that generally prohibited non-banking companies from using lines of credit to cover pre-paid instruments such as cards.
Fintech lending: Financial technology or fintech has become popular in recent years. Loans are one of the main trends to watch out for. Buy Now Pay later (BNPL) plans started gaining traction with online marketplaces like Amazon and Uber earlier this year. However, it all came to an end with the announcement of the banking regulator in June.
Then, in September, the RBI issued guidelines for digital lending, banning media access and data storage applications for mobile phones.
Cryptocurrencies: Finance Minister Nirmala Sitharaman has introduced a 30% tax on crypto exchange profits as well as an additional 1% TDS (tax deducted at source) on crypto exchanges in the budget as of 2022–2023. The interests of investors were completely damaged by this, which had a negative impact on the amount of cryptocurrency transactions made on the exchange.
This year, the value of bitcoin has also increased significantly. Earlier this year, when bitcoin was trading at around $46,208 on international cryptocurrency exchanges, things were looking good, but today ( December 21), it is currently down more than 63 percent, trading at about $16,840. Over the past year, the combined market value of cryptocurrencies has fallen significantly. The market capitalization of all cryptocurrencies exceeded 2.24 trillion on January 1, 2022. At the end of December (December 21), it hovers around $ 810 billion, which is less than a third of the peak $3 trillion in November 2021.
IT Stocks: During the pandemic, the Nifty IT index has made significant gains. However, technology stocks haven’t had much luck this year. The Nifty IT index peaked on January 3 at 38,715 and fell to 26,880 on July 11. This is down 26% this year. The P/E (price/earnings) ratio for the IT index is 27.3, while the P/B (price/book) value (as of Nov 30) is 8.48.
Investing in Foreign Stocks: Investors in India are encouraged to invest in various international stock markets through various investment methods. However, retail investors have found it difficult to place bets that are spread too thin. A market watchdog has ordered financial institutions not to accept new subscriptions to foreign investment programs at the beginning of the year.
However, SEBI allowed the fund to buy foreign stocks again in June, after a wait of almost six months, as long as it remained below the industry minimum limit. industry. This happened after the decline in the price of foreign stocks as a result of the sharp correction in the international market. The value of mutual fund investments has decreased as a result of the global stock market crash.
Eight new funds of funds (FoF) that invest abroad have been introduced in 2022. Together they raised $414 crore in the month of their introduction, which is not a huge amount. Even though Paytm made its initial public offering (IPO) in the second week of November last year, the price decline that followed continued till 2022. According to the data collected by Bloomberg, the expected IPO lost almost 75% of its. value over the previous year, which is considered the worst performance for a major IPO in a decade.
- Financial ideas and private funds that failed, from cryptocurrency to unicorn IPOs
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