How after a dream run, stock markets could see moderation in 2022

Domestic mutual funds (MFs) pumped in Rs 76,779 crore (about $10.2 billion) into the markets this year until December 22

The equity markets had a dream 2021. Stock prices climbed to record highs. Initial public offerings (IPOs) saw their highest ever mop-up. New trading accounts opened at a pace never seen before.

However, next year could be different because the buoyancy in the market — the underpinning factor — turns shaky owing to the unwinding of post-pandemic stimulus measures taken by central banks, the lingering threat of new Covid-19 variants, and rising concern over India’s expensive valuations.

During the year, the Sensex rose 29.4 per cent to hit a record high of 61,766 on October 18. The Nifty 50 index surged 32.2