“While the year commenced with restrained expectations and volatility in the initial months, the Indian market witnessed a remarkable recovery in the second half from its March 2023 bottom,” said Axis Securities MD & CEO Pranav Haridasan.
In 2023, the sensex and Nifty both gained 19-20%, while the BSE’s midcap index was up 46% and the smallcap index 49%. Investor wealth, as measured by BSE’s market cap, went up by nearly Rs 85 lakh crore to a record Rs 370.6 lakh crore.
On Friday, the sensex ended the year’s last trading session with a 170-point loss at 72,240, while Nifty was down 47 points at 21,731. The year started with the prospect of a recession in the US (though it never came) and a struggling Chinese economy (it continues to lag). As the outlook for the two giants was hazy, investors were guarded with their forecasts for the year.
By early March, the sensex had dipped to a low of 57,000. This dip in the market was partially due to the damning report against Adani Group by US-based short-seller Hindenburg Research that alleged serious corporate malfeasance which the Indian conglomerate denied. But, to a large extent, the selloff was due to foreign fund outflow from the stock market.
Dalal Street’s revival started from that point. In the second quarter, as inflation in India showed signs of moderation and RBI supported the economy by not being too hawkish by restraining to raise rates, the sensex rallied. The next quarter was about consolidation. The index again picked up steam in the last quarter, especially after the results of polls in four major states raised hopes that after the Lok Sabha polls in mid-2024, the BJP-led alliance at the Centre would possibly come back to power, ensuring policy continuity.
