Year Ender 2023: Nifty Delivers 18% Returns, Midcaps and Smallcaps Break Records, IPO Investments Shine

Various global firms have revised their ratings for India along with GDP growth forecasts, leading to BSE-listed companies surpassing the highest market cap level of 4 trillion dollars. NSX has now become the world’s 7th largest exchange, surpassing the Hong Kong Stock Exchange.

The year 2023 is coming to a close, marking an exceptional year for stock market investors. NSE Nifty has crossed 21,500, while Sensex is beyond 71,000. Investors have reaped substantial gains, as sentiments saw a significant boost in November and December, according to a report by Motilal Oswal Broking and Distribution.

Both macro and micro fundamentals in India are robust, contributing to reaching new heights in the market. Nifty has provided a return of 18% so far in 2023. Mid-cap and small-cap segments have shown significant growth, with Nifty Midcap100 rising by 44% and Nifty Smallcap100 by 54%. Purchases in several key sectors, including PSU, realty, auto, as well as electricity, defense, shipping, fertilizers, and IT, have witnessed significant interest. PSU banks have outperformed private banks, maintaining a steady 1% ROE and showing signs of improved earnings.

After a surge in the secondary market, the IPO market also remained lively. This year saw 58 IPOs entering the market, raising a fund of 48,000 crores compared to 40 IPOs last year (totaling 64,000 crores). The pipeline for new-age tech IPOs, including Ola Electric, Swiggy, FirstCry, and Mobikwik, remains strong, anticipating rapid growth.

The collective efforts of various global firms have resulted in an improvement in India’s ratings, coupled with GDP growth forecasts. Consequently, BSE-listed companies have exceeded a market cap of 4 trillion dollars, surpassing even the Hong Kong Stock Exchange to become the 7th largest exchange in the world.