Business & Investment

Bitcoin: Cryptocurrency won the best performing asset class of 2020-21 with 800% return

New Delhi: Cryptocurrency The asset class for the 2020-21 fiscal year surged, followed by crude oil falling below all other commodities due to the sharp price drop in March last year.

The March pandemic overturned the price charts of many counters, but also gave traders the opportunity to take full advantage of the crisis and subsequent recovery.

In base metal packs, all counters made strong profits as demand for metals increased following the opening of the economy. Energy counters, along with some produce, have also generated wealth with past finances.

Equity and returns from large equity mutual funds were the highlight of the year. Sensex And Nifty suffered a historic crash and then recovered to a record high during the year. Medium and small caps are also unique.

Combatant Bitcoin
Bitcoin was an asset held during FY2009 as cryptocurrencies surged nearly 800% annually. Other coins were in similar demand. Unlike the last few pullulans in cryptocurrencies, this year’s rally was different. There were some basic reasons to thank.

According to industry watchers, acceptance and demand from institutional investors around the world, and one-third of Bitcoin’s supply shock event (a phenomenon in which the number of Bitcoins mined daily is halved) has led to a major backlash. It was. Eventually, the price of Bitcoin exceeded $ 60,000 for the first time. Analysts believe the surge could continue next year, but less knowledgeable investors should be cautious.

“Don’t be distracted by price guesses, as anything that goes up has to go down. Don’t blindly chase the rally in any market. If this rally is right, new buys will support Bitcoin. But you can guess, but ZebPay’s Chief Marketing Officer, Vikram Rangala, said:

Precious metal: silver is excellent
Silver was in great demand during the year, mainly due to industrial demand and a push for renewable energy. Silver is used for the solar panel. Metals rose 73% in 2009, from 36,871 rupees per kg at the end of March 2020 to 63,666 rupees on Tuesday. Whitemetal hit a record high of Rs 78,000 in August, but was later corrected.

Gold used as a hedge against inflation and currency devaluation, especially during the crisis, rose 8% to Rs 44,331 per 10 grams. It also hit a record high of 56,191 rupees, but fell as bond yields rose. Gold tax cuts also put pressure on prices.

“Gold should have a deeper bottom. The US Treasury is trading high again and the dollar index is expected to rise. The new level should be 42,000 rupees, a good level to buy. That’s what SMC Global Securities Bandana Balti said.

She said there could be a scenario where gold could fall below Rs 40,000. “No one is talking about it, but for a very short time we may see it, but there are strong buys at that level so people can’t get the chance to cash it out. I feel, “she added.

Base metal: Demand exceeds supply
Against the backdrop of a recovery in demand, the fate of base metal packs changed as prices rose. Compared to the previous final price, copper soared 75 percent, tin 46 percent, zinc 45 percent, nickel 36 percent and aluminum 32 percent. Reeds performed poorly, up only 17%.

Since the second quarter of FY2008, the supply-demand balance has been disrupted as a pandemic-related closure outweighs the increase in production and mining, companies struggle with technical problems, and demand recovers after an increase in backlog. This led to a sharp rise in prices.

Base metals have also been boosted by the government’s special focus on infrastructure spending, but rising interest rates have recently raised concerns with government officials. In addition, rising consumer discretionary demand has led to higher prices.

“The United States is announcing details of infrastructure spending packages that could be $ 3-4 trillion. Currently, the focus is shifting to manufacturing PMI data for major economies scheduled for later this week. So, bright reading could further incite demand optimism, and could also curb the downsides of metal packs, with the expectation of easing stance by central banks in major countries. ” Said.

Agricultural products: Jute stands out
Jute was clearly the winner of the produce, with a 25% surge over the past year to reach Rs 6,230 per 100 kg. One of the special reasons for the collection of golden fibers was that the Cabinet nodded 100% jute packaging for edible grains and 20% for sugar.

Cardamom, which is used as a spice in many dishes, plummeted 44% as production is expected to increase by 78% annually. Wheat also struggled for record rabbi production.

Differences in products in FY2009

Guar gum and guar seeds used to drill crude oil wells eventually recovered due to the surge in oil demand. They added 6% and 7% respectively. However, sugar and mentha oil remained calm and fell to the low double digits.

Energy: Crude oil triple
This year was unprecedented for crude oil, the most traded and perhaps the most important energy commodity. In the international market, the price of crude oil futures fell below zero at some point, shocking even experts.

However, prices recovered sharply due to reduced production and increased demand. Counters have almost tripled since March 2020. In fact, it has begun to confuse the fiscal calculations of import-dependent countries like India.

“Prices will be under pressure in the next quarter, with refinery stagnation, growing interest and a renewal of the European blockade, deteriorating short-term demand outlook, stagnant demand recovery and vaccine efficiency. In question, we could bring the WTI price back to $ 50, “said Motilal Oswal’s Navneet Damani and Shweta Shah.

Natural gas returned 50% in 2021, although prices fluctuate primarily due to weather patterns in the United States and Europe and related demand.

Demand for residential real estate recovers
Demand for residential real estate has recovered after the real estate market has fallen for several years. Meanwhile, commercial facilities, especially warehouses, continued to generate good revenue due to the rapid growth of e-commerce.

Government intervention through unlocking and a series of reforms has boosted sentiment towards the sector. The combination of low interest rates and reduced stamp duty has consistently achieved monthly sales of approximately 10,000 units in Mumbai since September.

“Homebuyers have recognized the importance of spacious homes with fiber connections that can combine state-of-the-art equipment with office space. We have already begun to witness the integration of this sector and scale. Developers who have big and powerful books will be even stronger after the pandemic. A broader economic recovery is expected to gain momentum and help most sectors. In 2010, pricing power Will be a year of growth for this sector, “said Krish Raveshia, CEO of Azlo Realty.

Equity: A stunning return
For stocks, this year was a huge turmoil and record-breaking run. Indexes and stocks plunged to a few years’ lows in March and recovered to record a series of new highs by the end of the year. And because of change, small and medium-sized indexes outperformed their larger peers.

BSE Sensex has risen 70% so far in the fiscal year, while BSE Midcap has risen 91%. However, with over 650 actively traded components, the BSE Smallcap index has yielded spectacular 114% returns in the last 12 months.

The large amount of money supply, especially from outside India, pushed up the index. Expectations for rapid recovery, vaccine deployment, and good earnings growth were other major reasons behind such a spectacular rally. Nifty is currently trading with record high ratings.

“New restrictions and faster vaccinations can be expected to keep sentiment positive at the beginning of the new fiscal year. The earnings season will also begin in the second week of April and could be a driving force for stocks. Logically, the market should rise somewhat from the first week of April. If this doesn’t happen at the beginning of April, the Nifty50 could drift towards 13,500-13,600, “Kotak Securities said. Rusmik Oza, Head of Basic Research, said.

Metals performed best, with BSE metals rising 150% in 12 months. BSEIT and BSEAuto were other sectors that recovered more than 100%. Meanwhile, BSE Capital Goods rose 93% as white goods makers soared to governments focused on infrastructure and Make in India initiatives.

Mutual Fund: Thematic Scheme Leads
Whatever the strategy, almost all mutual fund schemes will benefit stellar returns in 2020, some of which have returned more than 100% in the past year. The Contra Fund was a fiscal year pick. The dividend yield fund has also outperformed.

In the equity category, funds investing in a variety of themes and a wide range of markets outperformed other funds. The ICICI Prudential Commodities Fund, ICICI Prudential Technology Fund, Kotak Small Cap Fund, PGIM India Midcap Opportunities Fund and Nippon India Small Cap Fund were among the top five performance funds, up 124-170%.

In the debt fund category, short-duration funds shined and credit risk funds came to the fore again, surpassing their peers. The JM Low Duration Fund, Franklin India Low Duration Fund, Franklin India Credit Risk Fund, Adityaville Rasun Life Short Term Fund and Baroda Credit Risk Fund were top performers with enviable 10-27% returns.

Bitcoin: Cryptocurrency won the best performing asset class of 2020-21 with 800% return Bitcoin: Cryptocurrency won the best performing asset class of 2020-21 with 800% return

Back to top button