The stock market is showering money on investors, with returns many times higher than bank interest.

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The Reserve Bank of India’s Financial Stability Report-2024 shows that people are getting good returns from the stock market, which is much higher than the interest offered by any bank and non-banking financial companies. Banks typically earn seven to eight percent annual returns, but investors in the stock market have seen strong returns. So, people are investing in risky stock market instead of keeping their savings in banks.

Those who invested in Nifty were rewarded

In one year Nifty 50 has returned 29 percent, Nifty Midcap 150 56 percent, Nifty Smallcap 250 63 percent and Nifty Microcap 250 85 percent. When talking about the last two years, Nifty 50 has returned 13%. During this period, Nifty Midcap 150 has returned 26 percent, Nifty Smallcap 250 has returned 23 percent and Nifty Microcap 250 has returned 37 percent.

Sensex, Nifty at new record levels

On Monday, the Sensex closed at a new record high of 443 points, while the Nifty remained above 24,100 points on buying in domestic bank and IT stocks amid strength in global markets. The Sensex closed at an all-time high of 79,476.19. During trading, the Sensex at one point rose 528.27 points to 79,561.

In the last 10 years, people’s expenses have increased, income and savings have decreased, the habit of taking loans has increased.

The Nifty surged 131.35 points to close at an all-time high of 24,141.95 points. It touched 24,164 during trading, which is just 10 points lower than the all-time high of 24,174 achieved in the previous trading session.

Why is the market booming?

Banks’ bad loans have come down to 12-year levels.

The full budget is expected to increase government spending.

Quarterly results of companies will start in July.

Return of foreign investors, in June Rs. 26,565 crore worth of shares bought.

What the experts say

Analysts say the decline in US inflation has increased expectations for a rate cut by the Federal Reserve in September. This expectation contributed to the strong performance of IT stocks. Along with this, foreign institutional investors have also returned to the Indian market and increased their investment in June. This has raised investors’ hopes. The market will continue to rise.

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