The Indian stock market is experiencing a strong bull run with both benchmark indices Sensex and Nifty 50 hitting consecutive record highs. This bullish momentum is attributed to investors exhibiting a heightened risk appetite, propelled by robust domestic economic growth and optimism surrounding anticipated global interest rate reductions in the upcoming year.
The year 2023 is characterized by robust returns in the domestic equity market, albeit with intermittent bouts of volatility. The benchmark Nifty 50 has surged by nearly 20%, while the Sensex has yielded returns exceeding 18% so far this year. Notably, the overall market capitalization of all companies listed on the BSE has surpassed ₹366 lakh crore, underscoring the significant growth and value within the market.
December 2023 has emerged as the best month in terms of returns for the Indian market. The Nifty 50 has recorded a remarkable surge of over 7% within the month, constituting the most substantial monthly rally observed throughout the year. This was followed by more than 5.5% gains in the month of November.
Let us take a look at some of the key milestones achieved by the Indian stock market in 2023:
1. Nifty 50 index delivered nearly 20% returns, while BSE Sensex surged more than 18% in 2023 so far.
2. Broader markets outperformed the frontliners by a heavy margin as the Nifty Smallcap 100 index surged 54%, while the Nifty Midcap 100 jumped over 44% in 2023.
3. The market cap to GDP ratio increased by 10 percentage points to 115 as of December 25, 2023, from 105 on December 31, 2022.
4. India’s market capitalisation crossed the $4 trillion mark. The Indian stock market is ranked fourth in the world in terms of market capitalisation, following the United States, China and Japan.
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5. Nifty 50 touched 20,000 on September 11, 2023, and soon 21,000 on December 8, 2023.
6. The Indian market commenced the year 2023 on a somber note, with the Nifty 50 experiencing a decline of over 2% each in the initial two months. The index recorded negative returns in four months of the year - namely January, February, August, and October.
However, the market displayed resilience and positive momentum for the remaining eight months, as the Nifty 50 registered gains during these periods.
7. The National Stock Exchange of India (NSE) has secured a prominent global position, standing as the third-largest exchange worldwide based on the number of trades in the cash market segment, commanding a substantial 10.8% share globally.
8. Additionally, NSE also became the world’s largest equity derivatives exchange, as evidenced by the notable share it commands in terms of the number of contracts traded. As of November-end 2023, the NSE commanded 73.7% global share in the number of contracts traded in equity derivatives.
Also Read: The five biggest market surprises of 2023
9. Furthermore, NSE maintains a robust 60.5% global share in the number of contracts traded across all asset classes in the derivatives market for the same period.
10. The number of registered investors in the stock market increased 22.4% to 8.49 crore as on December 25, 2023, from 6.94 crore on December 31, 2022. The investor base increased from 7 crore to 8 crore in just eight months.
The Indian stock market displayed a strong bull run in 2023, marked by consecutive record highs in benchmark indices. The market outlook for 2024 remains bullish, although expectations include continued volatility. Multiple domestic and international factors are poised to influence market dynamics in the upcoming year, contributing to the anticipated fluctuations and shaping the overall trajectory of the Indian stock market.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.
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First Published:
28 Dec 2023, 11:53 AM IST
