Nifty scales above the 21,500 mark while Sensex crosses 71,000
Domestic markets are ending the year 2023 on a buoyant note as the Nifty scales above the 21,500 mark while the Sensex crosses 71,000. Investor’s sentiments got a big boost in November and December which helped both domestic as well as global markets scale new highs, says a report by Motilal Oswal Broking and Distribution.
The IPO market was very vibrant, following the bullish trend in the secondary market. 58 IPOs came to the market for subscription to raise funds worth Rs.48,000 crore against 40 IPOs last year (total issue size of Rs.64,000 crore).
Going ahead, the pipeline remains strong with a sharp increase expected in new-age tech IPOs, including Ola Electric, Swiggy, FirstCry, Mobiwik, the report said.
India’s macro and micro fundamentals remain strong and are helping the market to scale new highs. Nifty has given returns of 18 percent in 2023 so far. Despite this up-move, Nifty is trading at a 12-month forward P/E ratio of 19x, which is at a discount to its 10-year average of 20x.
Midcap and smallcaps witnessed a huge rally with Nifty Midcap100 up 44 percent while Nifty smallcap100 surged 54 percent. PSUs, realty, and auto along with several niche sectors like power, defence, shipping, fertilizer, and EMS saw huge buying interest, the report said.
PSU Banks sharply outperformed private banks as they are now well placed to sustainably deliver 1 percent RoA and have scope of earnings upgrade.
All this has led to an upgrade in India’s rating as well as GDP growth forecast by various global firms, resulting in BSE-listed companies’ market cap crossing a time-high of the $ 4 trillion mark. In fact, NSE overtook the Hong Kong Stock Exchange to become the world’s 7th largest exchange by market cap.
[With Inputs from IANS]
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