Experts said India’s strong macroeconomic fundamentals, political stability owing to the BJP’s success in recent elections in three significant states, optimistic corporate earnings outlook, signals from the US Federal Reserve about three prospective rate cuts next year and heavy retail investors participation played a major role in fuelling the stock market rally in 2023
Mumbai:
In a memorable year for the equity market, Dalal Street investors added a whopping Rs 80.62 trillion to their wealth in 2023 as a raft of positive factors powered a stellar rally in stocks.
Experts said India’s strong macroeconomic fundamentals, political stability owing to the BJP’s success in recent elections in three significant states, optimistic corporate earnings outlook, signals from the US Federal Reserve about three prospective rate cuts next year and heavy retail investors participation played a major role in fuelling the stock market rally in 2023.
Till December 28 this year, the 30-share BSE Sensex has jumped 11,569.64 points or 19 per cent.
The market capitalisation of BSE-listed companies has climbed sharply by Rs 80,62,310.14 crore so far this year to reach an all-time high of Rs 3,63,00,558.07 crore.
At the close of trade on Thursday, the market valuation of BSE-listed firms reached the lifetime high.
The Indian market has demonstrated resilience, emerging as one of the standout performers within the broader emerging markets basket, Sunil Nyati, Managing Director of Swastika Investmart Ltd, said.
According to him, 2023 is not just a good year for the Indian stock market but also a triumph for retail investors.
“Retail investors, no longer prone to panic during corrections, are confidently holding onto their investments, ready to ride the wave of India’s economic ascent,” he added.
Indian equities added another feather to its cap as the combined market valuation of all listed companies on the leading stock exchange BSE reached the USD 4 trillion-milestone for the first time ever on November 29 this year.
“The surge can be attributed to a confluence of factors: the impending elections fostering political stability, promising whispers of rate cuts in 2024, and a much-needed decline in energy prices, finally enticing foreign investors back into the fold. This influx of foreign capital propelled largecap indices to new record highs,” Nyati said.
It took just two-and-a-half years to hit the USD 4 trillion landmark after the market capitalisation (m-cap) of all listed companies on the BSE touched the USD 3 trillion-mark on May 24, 2021.