Marking its 8th consecutive year of positive returns, Nifty 50 has concluded with a 20% gain. With the exception of 2015 being the only year with negative returns, it is the very index that has given positive returns ever since.
This year, the total gain is of ₹82 lakh crore for the investors.
At the start of the year the market cap of the BSE-listed companies was around ₹282 lakh crore and later it reached ₹364 lakh crore by year-end. This includes a significant ₹30 lakh crore addition in December alone.
Tata Motors Leads Gainers as Nifty 50 Sees Broad Market Success in 2023
Emerged as one of the top gainers, Tata motors doubled its value on the final trading day of the year. Other players like Bajaj Auto, NTPC, L&T, and Coal India are also notable gainers in the year.
This year saw the wave of the PSU-themed rally throughout the year and as a result, NTPC and Coal India achieved their best calendar year performance ever.
48 out of 50 Nifty constituents ended 2023 with gains. The two that did not include UPL (down 18%) and Adani Enterprises (down 26%).
Despite the gain of 20% in Nifty 50, it was the broader markets that stole the show. Giving its best performance since the year 2017, Nifty Midcap index rose by 46.5%. On the same lines, The Nifty Smallcap index rose by 55%. Notably, 93 Midcap stocks and 86 Smallcap stocks ended the year with gains.
2023 Market Recap: Resilient Domestic Investors, PSU Stocks Shine; Caution Advised for 2024
Domestic investors remained resilient despite the foreign investors selling ₹14,653 crore in the cash market, hence contributing nearly ₹1.7 lakh crore through SIP flows. With the index of state-run companies gaining 81%, its best calendar year performance since 2007, it was the PSU stocks that were the outliers and stood out as performers.
All 20 constituents on the index delivered positive returns, with four stocks gaining over 100%, marking the second-best performance since 2009.
As far as past data is concerned, historical data indicates caution, since 7 of last 10 months of January and 6 of last 10 month of February have given negative returns.
Analysts have suggested to exercise prudence and caution.
