Indian Stock Market Summary 2023

Indian Stock Market Summary: Starting with a downward trend in 2023 (CY23), the Indian stock market has since seen a significant uptick, with the Nifty 50 index posting a current year-to-date return of 19% and the Sensex index posting a year-to-date return of 18%. percent. More than 50 motherboard IPOs were launched in the market and some of the outperforming sectors include defence, real estate, automobiles, PSEs, etc.

On the domestic front, India has become the world’s fifth-largest economy despite recessionary pressures in other developed countries. Moreover, the Reserve Bank of India (RBI) had increased the repo rate to 6.5% in February 2023 but has not changed the figure since then to maintain a balance between inflation and growth.

In this article, we will look at a summary of the Indian stock market for 2023 and look at the key events and developments that occurred in the past year.

Key events and developments in Indian stock market CY23

Key events – Adani-Hindenburg saga and more

Adani Group’s shares have suffered greatly due to fraud allegations by US-based short-seller Hindenburg Research. The stock was in freefall in January 2023 after a report from short sellers raised concerns about its inappropriate use of tax havens and debt levels.

But Adani made the most of the crisis by going into deep decline. To boost investor confidence, the company has brought investors such as GQG Partners and Abu Dhabi Conglomerate International Holding on board some of its group companies.

Apart from the above, other major events that occurred in CY23 include the merger of HDFC Limited with HDFC Bank and the financial spin-off of Reliance Industries Limited and Jio Financial Services Limited (JFSL).

Nifty’s best performing sectors

The best-performing sectors in CY23 included defence, real estate, PSEs and automobiles, which delivered one-year returns of 88%, 80%, 77% and 47% respectively.

Top Performing Stocks – Large Caps

The best performing stocks in the large cap segment include Tata Motors – DVR Limited, Hindustan Aeronautics Limited and Zomato Limited, with annual multibagger returns of 151%, 123% and 106% respectively.

Best Performing Stocks – Mid Caps

The mid-cap segment includes REC Limited, Power Finance Corporation Limited and Indian Railway Finance Corporation Limited, delivering multibagger returns of 252%, 229% and 205% annually.

Top Performing Stocks – Small Caps

The best performing stocks in the small cap segment include Lloyds Enterprises Limited, Inox Wind Limited and Avantel Limited, with annual multibagger returns of 380%, 377% and 360% respectively.

Commodity Market Returns

Entering the commodity market, the price per 10 grams of 24k gold rose from Rs 55,350 in January 2023 to the level of Rs 64,299 in December 2023. Additionally, the price of Brent crude oil fell from $82 per barrel in January 2023. CY23-77 per barrel.

FII inflows

Domestic and foreign investors have actively demonstrated confidence in India’s long-term growth potential. During CY23, foreign portfolio investors (FPIs) collectively invested around Rs 2.37 lakh crores (USD 24 billion) in financial instruments. Additionally, domestic institutional investors (DIIs) invested around Rs 1.69 lakh crores.

After registering net sales in the last two years, FIIs regained confidence in FY24, boosted by the BJP’s stellar performance in the Assembly elections in three of the four key states on the list.

Bumper IPO

2023 saw the total number of IPOs to date exceed last year’s tally, with 173 small and medium-sized enterprises (SMEs) and 56 mainboard listings. Additionally, the Securities and Exchange Board of India (SEBI) has shortened the listing timeline for all IPOs to ‘T+2’ days, making the process one of the fastest in the world.

The best performance figures considering listing gains in major IPOs were provided by the listings of Tata Technologies Limited and ideaForge Technology Limited at a premium of 162.85% and 92.78% respectively.

Similarly, the best performing figures considering listing gains in SME IPOs were Goyal Salt Limited and Sungarner Energies Limited, which were listed at a premium of 258.2% and 216.1% respectively.

Written by Amit Madnani

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