Market recap of fiscal year 2024

In India, the fiscal year spans from April to March, indicating that this 31st of March signifies the conclusion of the fiscal year 2023-24 or financial year 2024. This year has been remarkable for the Indian stock market. As we all know, the market's performance isn't consistently linear, and it will have its ups and downs. However, to grasp the comprehensive outcome, it's important to broaden our perspective and evaluate the market's performance over an extended period. And what better way is there than to quantify the performance in numbers and percentages.

Let's delve into some of the most intriguing statistics of the market during the fiscal year. Observing the indices, you can see this year emerging as one of the strongest for the stock market. Throughout the financial year, the Nifty50 surged by approximately 5000 points, signaling an impressive upward trajectory of nearly 29%. This upward momentum extended beyond the large-cap index alone. Remarkably, both mid-cap and small-cap segments showcased even more robust performances. The Nifty Midcap 100 witnessed a surge of around 18000 points, reflecting a remarkable upward movement of approximately 60%, while the Nifty SML 100 experienced a staggering growth rate of about 70% over the year.

Merely gaining an overview of the broader market provides ample understanding of the significant growth witnessed this year. The primary drivers behind this surge encompass the following industries/sectors and few of the top gainers during the year:

Nifty Realty up by ~133%

Nifty PSU Bank up by ~89%

Nifty Auto up by ~75%

Nifty Energy up by ~71%

Tata Motors up by ~136%

Bajaj Auto up by ~135%

Adani Ports up by ~112%

Hero Motocorp up by ~101%

However, amidst this overall positive market trend, what truly stands out are the PSU stocks. To gain insight, let's consider a few notable performers in this sector:

IRFC up by ~435%

REC up by ~291%

BHEL up by ~247%

NBCC up by 235%

Along with the regular market, it's essential to underscore the remarkable success witnessed in the IPO segment. With over 75 IPOs introduced throughout the year, a significant portion of them yielding substantial listing gains, the IPO market segment garnered considerable attention. Also, November 2023 marked a notable milestone with the IPO listing of Tata Technologies, representing the first IPO from the Tata group in nearly two decades. The market has also received this IPO with much enthusiasm. It has emerged as one of the top performers, boasting listing gains of approximately 163%.

Certainly, there were companies that had underperformed throughout the year, with surprising instances such as HDFC Bank being notable examples. Nonetheless, overall, the markets have witnessed a significant upward movement over the year.

This could be attributed to various factors. The market has witnessed a robust rise in retail inflows, with domestic mutual funds sustaining a net buyer position for 36 consecutive months. This trend has been facilitated by a notable surge in SIPs, breaking multiple record highs over the past 11 months. Additionally, there has been an uptick in Foreign Portfolio Investors (FPI) investments. Furthermore, factors such as India's inclusion in global bond indices and its stable and favourable macroeconomic outlook have also played a role.

With this huge year as a base, it would be very interesting to see how the coming year pans out. There are multiple factors that should be given attention though. This includes crude prices, interest rate policies and potential rate cuts, electoral outcomes, and the recent regulatory interventions from apex organizations such as SEBI and RBI, all of which may influence the market dynamics moving forward. With all of these in the pot, it is bound to make the journey ahead filled with excitement and thrill. Let us hope that we witness similarly favourable years in the times ahead.

If you want to understand the macro elements of the market and want to analyse how it affects to the markets along with other fundamental aspects, make sure to check out my course on Fundamental Analysis. Until next time!