How Indian Investment Market is Expanding
& the Fintech Industry is adding Spice to the Mix


Over the last two decades, India’s investment market has expanded dramatically. According to World Bank data, the overall market capitalization of the Indian stock market in 2021 was roughly $3.18 trillion, which is a measure of the value of all publicly traded firms listed on the stock exchange. The Indian stock market has a vast number of listed firms, with the two main stock exchanges being the National Stock Exchange of India (NSE) and the Bombay Stock Exchange (BSE). The number of contracts exchanged also reached a new high of 19.58 billion during the quarter, compared to 18.6 billion for the whole fiscal year.

  • Investors will remember 2022 as a year of unprecedented turmoil. The benchmark S&P BSE Sensex, which reflects the tumultuous year, fluctuated by about 13,000+ points from a low of 50,921.22 on Jun 17 to a record high of 63,583.07 on Dec 1, while the market has returned 5.29% year to date until December 16, 2022.
  • NSE registered investor base surpasses 5 crore unique investors in 2021-2022.
  • So far this fiscal year, equity derivatives volumes on the National Stock Exchange (NSE) have reached a record 17,350 trillion, led by proprietary and retail investors. This is compared to a total of 16,952 trillion for FY22.
  • The number of contracts exchanged also reached a new high of 19.58 billion during the quarter, compared to 18.6 billion for the whole fiscal year.

Also, in 2022 Numerous factors have changed the investment playbook. Investors must now re-evaluate their portfolios after determining which techniques and strategies will work in 2023.

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    Experts predict that the relative market outperformance of India will continue in 2023 due to favorable macroeconomic conditions and improving company fundamentals. It would also be advantageous to have a strong employment market, a favorable monsoon, and a drop in commodity prices.

    How is the Fintech sector enhancing the investment industry?

    Financial technology (fintech) companies are using technology to disrupt and innovate traditional financial services and processes, and they are having a significant impact on the investment industry. Fintech companies are developing new tools and platforms that make it easier for investors to manage and analyze financial data, automate processes, and increase efficiency and speed.

    Some examples of how fintech companies are enhancing the investment industry include the development of Robo-advisors, which use algorithms to automate the investment process and provide personalized investment recommendations to clients; the use of artificial intelligence and machine learning to analyze and make predictions about market trends and individual investments; and the creation of online platforms that allow for easier and more convenient access to a wide range of investment management products and services.

    Check out a few crucial fintech approaches for boosting the investing industry!

    Cloud-based investment management platforms: Cloud-based investment management platforms give smaller and emerging asset managers the ability to automate burdensome data management and reporting workflows, whilst also providing a radically improved reporting experience for clients. Data and digital transformation have never been more important for asset managers. Automation also frees employees from low-value, laborious tasks such as manual data aggregation and reporting, allowing them to focus on higher-value portfolio management and business development initiatives.

    Cybersecurity: Data security concerns were one of the main objections to asset managers moving to cloud-based software. Sophisticated detection systems, and strong authentication and encryption techniques to protect user data are standard. The level of investment and specialist expertise vendors can devote to monitoring the infrastructure and addressing new threats as they emerge ensure ongoing security, while safe business continuity protocols maximize system uptime.

    AI technology & Natural Language: Using natural language processing and generation (NLP/G), a type of AI technology, analysts can save time spent on data collection and instead focus on analyzing data with a higher potential for insights. An overwhelming majority (85%) of our respondents that use AI-based solutions in the pre-investment phase either strongly agreed or agreed that AI helped them generate alpha.

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    What will the Investment Industry look like in 2023?

    We may forecast that the progress and much more addition to it will continue in 2023, but it will also depend on a range of elements such as economic conditions, government policies, and worldwide trends.

    Here are some potential trends that may influence the market in 2023:

    • Continued growth in the technology sector: India is home to a large and growing tech industry, and it is likely that companies in this sector will continue to attract significant investment in the coming years.
    • Infrastructure development: The Indian government has made infrastructure development a priority, with plans to invest over $1.4 trillion in the sector by 2025. This is expected to create opportunities for investors to participate in large-scale projects and benefit from their growth.
    • Increased focus on sustainability: As awareness of environmental issues grows, investors may increasingly prioritize companies and projects that have a positive impact on the environment.
    • Growing middle class: India’s middle class is expected to continue to grow in the coming years, which may lead to increased demand for a variety of products and services. This could create opportunities for investors in sectors such as consumer goods and retail.
    • Favorable government policies: The Indian government has implemented various initiatives to encourage investment in the country, including tax breaks and relaxed regulations. It is possible that these initiatives will continue in the coming years, making India an attractive destination for investors.

    Overall, the Indian investment market in 2023 is likely to be dynamic and diverse, with a range of opportunities for investors across a variety of sectors.

    About Genesis

    Genesis is an Asset management software product for the front office, middle office and back office integrated offering for Fund accounting, Portfolio accounting and wealth management. It’s available on the cloud as well as an enterprise solution. Genesis can manage orders powered by pre-trade rules for internal and external compliance. The system is highly configurable with a Chart of accounts enabling clients to create ad-hoc GLs. It’s a highly configurable and scalable solution.

    The cloud version is powered with on-demand scalability for resource-intensive tasks, especially during reporting times like month-end reporting for Portfolio managers and asset managers.

    The application is capable of supporting multiple asset classes like equity, bonds, futures, Options, swaps, and FX including spots, forwards and NDF.

    Genesis is supported by granular accounting and reporting enabling different stakeholders to see useful portfolio view and NAV. This is augmented by IBOR and ABOR reporting in Genesis. Genesis is a highly configurable and scalable solution. It is capable of supporting multiple asset classes like equity, bonds, futures, Options, swaps, and FX including spots, forwards and NDF. The cloud version is powered with on-demand scalability for resource-intensive tasks, especially during reporting times like month-end reporting for Portfolio managers and asset managers. The application is supported by granular accounting and reporting enabling different stakeholders to see useful portfolio view and NAV.

    Visit us at Genesis – Assett & Investment Management Platform to know more!