Year Ender 2023: The year when stock market had an epic run, market valuation crossed Rs 4 trillion
By Team Asianet Newsable | First Published Dec 29, 2023, 10:26 AM ISTFactors contributing to this surge include robust macroeconomic fundamentals, political stability, positive corporate earnings outlook, signals of prospective rate cuts from the US Federal Reserve, and active participation by retail investors.
In a remarkable year for the Indian stock market, various factors have contributed to its historic rally, with the 30-share BSE Sensex witnessing a significant surge of 11,569.64 points or 19% by December 28, 2023. The market capitalization of BSE-listed companies has soared by Rs 80,62,310.14 crore, reaching an unprecedented Rs 3,63,00,558.07 crore. The optimism stems from India's robust macroeconomic fundamentals, political stability following BJP's electoral success, positive corporate earnings outlook, signals of prospective rate cuts from the US Federal Reserve, and active participation by retail investors.
Notably, the combined market valuation of all listed companies on the BSE surpassed the USD 4 trillion milestone for the first time on November 29, 2023. Analysts attribute this surge to various factors, including impending elections fostering political stability, whispers of rate cuts in 2024, declining energy prices, and renewed interest from foreign investors.
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The BJP's decisive victories in state elections have bolstered investor confidence in political continuity post the 2024 Lok Sabha elections. The market's resilience is further supported by healthy trends in corporate earnings growth and robust domestic macros, positioning India with the highest growth among major economies.
The BSE Sensex hit an all-time high of 72,484.34 points on December 28, rebounding from a 52-week low of 57,084.91 points on March 20, 2023. The index made gains in eight out of twelve months, with November and December being particularly rewarding, witnessing a 4.87% and 8% jump, respectively.
Market experts highlight India's strong macroeconomic fundamentals, marked by robust GDP growth, moderating inflation, and a stable rupee, as key contributors to the market's resilience. Additionally, a rally in the broader market, propelled by midcap and smallcap stocks, and a surge in mainboard Initial Public Offerings (IPOs) have added to the overall optimism.
Reliance Industries leads the market as the most valued firm with a market valuation of Rs 17,63,001.81 crore, followed by Tata Consultancy Services, HDFC Bank, ICICI Bank, and Infosys in the top-five order.
Investors have reaped substantial gains in 2023, with the BSE barometer ending the year with an annual gain of 4.44% or 2,586.92 points. The Indian stock market's stellar performance reflects a confluence of positive factors and investor confidence, positioning it as a standout performer on the global stage.
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