As the curtains close on 2023, the Indian equity market stands tall, painting a canvas of vibrant green on the year-end review. It has been a remarkable turnaround from the jittery lows witnessed in March, fuelled by global uncertainties and geopolitical tensions. But what sparked this impressive rise? While most of the global equity indices are still likely to test their 52-week high, the Indian equity indices are at their lifetime high. And will this momentum carry over into 2024?
Most of the equity indices have generated returns in double digits on a year-to-date (YTD) basis. There are hardly any indices that have given single-digit returns since the start of the year. However, the rally has not been uniform. While the mid-cap and small-cap segments danced with abandon, the frontline indices, often weighed down by heavyweight financials and IT giants, remained relatively subdued. The best performing index, BSE SME IPO, which is constituted by SMES listed on the BSE SME platform, has generated return of 94.34 per cent year-to-date.
The second-best performing index was the Realty index. Realty companies are showing signs of resilience after a gap of almost 14 years. The shares of a not-so-great company such as Unitech Limited are up by more than 350 per cent since the start of the year. Even large-cap names such as DLF are up by more than 80 per cent this year. Another segment that surprised many by its superior returns was public sector undertakings (PSUs). An index that tracks the price of major PSUs listed on the BSE has witnessed gains of 54 per cent. Both banks and other enterprises with a majority stake of the president of India saw a huge run-up in their share prices this year.
Factors Supporting Growth
This story is from the January 01, 2024 edition of Dalal Street Investment Journal.
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This story is from the January 01, 2024 edition of Dalal Street Investment Journal.
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