Indian Stock Market Concludes Fiscal Year on High Note: Sectors Across the Board See Growth
The Indian stock market has ended the fiscal year with remarkable performance, as evidenced by the Sensex rising by 655 points and the Nifty surpassing the 22,300 mark, illustrating a broad-based rally across all sectors. The BSE midcap index and smallcap index experienced noteworthy gains, up by 0.6 percent and 0.4 percent respectively, highlighting the robust investor confidence permeating through various market segments.
Kalpesh Parekh, Head of Equities at Share India, underscored the exceptional year for the Indian markets, noting that the Nifty emerged as one of the top performers in Asia with a near 29% USD return. This remarkable performance was not limited to the Nifty alone; Mid and Small-cap indexes also reported phenomenal returns, outpacing the broader market. PSU stocks, auto, energy, and pharma sectors were among the top performers, showcasing varied sectoral growth. The fiscal year also saw positive contributions from Foreign Institutional Investors (FIIs) and Domestic Institutional Investors (DIIs), bolstering the market further.
Noteworthy was the performance of individual stocks within the Nifty & Nifty Bank, which registered gains over 2% for two consecutive series. With 31 Nifty stocks yielding positive returns, names like HDFC Life, L&T, Eicher, Hero MotoCorp, Kotak Bank, ITC, IndusInd Bank, and Titan stood out as significant gainers.
The Nifty saw an unprecedented rise of 30% in FY24, marking the highest returns since 2010, with nearly all sectoral indices on the upswing. Real Estate, PSU, Power, and Auto sectors led the charge, contributing to a market where 48 of 50 Nifty stocks gave positive returns, including five that doubled in value.
Vinod Nair of Geojit Financial Services highlighted the conclusion of the fiscal year on a positive note, emphasizing the resilience of mid- and small-cap stocks despite the volatility witnessed towards the year-end. An upgrade in domestic economy forecasts suggests a bright outlook for FY25, though there's a growing focus on large-cap stocks due to the high valuations of mid-caps.
Analysts like Kunal Shah from LKP Securities and Rupak De, Senior Technical Analyst, pointed to the trends in Bank Nifty and the Nifty respectively, signaling strength and optimism in the indices. Meanwhile, Jateen Trivedi, VP Research Analyst, drew attention to the rupee’s weakness against a strong dollar, with the rupee closing marginally lower at 83.40 per dollar.
As the Indian stock market continues its upwards trajectory, riding on the back of successive gains and nearing record highs, all eyes are now set on the future, anticipating how various sectors will steer their course in the coming fiscal year. With a comprehensive view of market movements, including stock performances and the day's highs and lows, investors and analysts alike remain optimistic about the continued growth and vitality of the Indian financial landscape.
Analyst comment
Positive news.
As an analyst, the Indian stock market is expected to continue its upward trajectory in the coming fiscal year. Various sectors have shown growth, and investor confidence remains high. The performance of mid- and small-cap stocks is noteworthy, although there is growing focus on large-cap stocks due to high valuations. The rupee’s weakness against the dollar is a factor to watch. Overall, the market is expected to remain strong and vibrant.
