In 2023, the domestic equity benchmarks, Nifty 50 and BSE Sensex, exhibited a remarkable upswing of approximately 20%, marking their second-best performance since 2017. This stellar performance positioned them among the top-performing stock indexes globally. Notably, Nifty 50 achieved its eighth consecutive year of positive returns. India solidified its status as a stock market powerhouse, crossing the $4 trillion market capitalization threshold and securing the fifth position globally, following the likes of the US, China, Japan, and Hong Kong.
The bullish trend was underpinned by sustained inflows from domestic mutual funds, foreign capital, better-than-expected economic growth, and robust corporate earnings. Investors on Dalal Street witnessed a significant boost to their wealth, with a staggering ₹81.90 lakh crore added in 2023, propelled by an impressive rally in stocks.
However, in the final trading session of the year, both Nifty 50 and Sensex experienced a halt to their five-day winning streak. The Nifty 50 settled at 21,731.40, and the Sensex closed at 72,240.26. This pause was attributed to profit-booking in select heavyweights, even as the mid and smallcap indices concluded with substantial gains. Over the last five trading sessions, the BSE benchmark surged by 1,904.07 points or 2.70%, while the Nifty climbed 628.55 points or 2.97%.
In the last one year, the Sensex benchmark rose over 19 per cent. Additionally, the midcap and smallcap indices significantly outshone the benchmarks, with the BSE Midcap index soaring by 46 per cent and the Smallcap index surging by an impressive 48 per cent.
Top gainers and losers: Top 10 Sensex stocks that moved the most in 2023
Here are the top five Sensex gainers of 2023 –
- Tata Motors: At a current market price (CMP) of ₹779.40, the Tata Groupstock emerged as the top Sensex in 2023, logging a sharp 10.2.95 per cent increase in its stock price.
- NTPC Ltd: At a current CMP of ₹310.50, the NTPC stock has emerged as the second biggest Sensex gainer of 2023, logging a sharp 96.14 per cent increase in its stock price.
- Larsen and Toubro Ltd: At a current CMP of ₹3,527, the L&T stock has emerged as the third biggest Sensex gainer of 2023, logging a sharp 69.01 per cent increase in its stock price.
- Power Grid Corp of India Ltd: At a current CMP of ₹236.70, the Power Grid stock has emerged as the second biggest Sensex gainer of 2023, logging a sharp 55.91 per cent increase in its stock price.
- UltraTech Cement Ltd: At a current CMP of ₹10,488, the UltraTech Cement stock has emerged as the second biggest Sensex gainer of 2023, logging a sharp 51.02 per cent increase in its stock price.
Here are the top Sensex laggards of 2023 –
- Housing Development Finance Co: At a current CMP of ₹2,729.95, the stock has emerged as the biggest Sensex loser of 2023, logging a decrease of 3.69 per cent in its stock price.
- Infosys Ltd: At a current CMP of ₹1,542, the stock has emerged as the second biggest Sensex loser of 2023, logging a decrease of 4.37 per cent in its stock price.
- Kotak Mahindra Bank: At a current CMP of ₹1,904.70, the stock has emerged as the third biggest Sensex loser of 2023, logging a decrease of 5.03 per cent in its stock price.
- Hindustan Unilever: At a current CMP of ₹2,663.35, the stock has emerged as the fourth biggest Sensex loser of 2023, logging a decrease of 5.36 per cent in its stock price.
- HDFC Bank: At a current CMP of ₹1,709.65, the stock has emerged as the fifth biggest Sensex loser of 2023, logging a decrease of 5.38 per cent in its stock price.
Market Outlook in 2024
Looking ahead, the markets anticipate a potential increase of 15 percent from the present levels. ICICIdirect, a domestic brokerage firm, projects that the Nifty 50 is poised to reach the 25,000-mark by the conclusion of 2024, while the Sensex target is set at 83,250.
‘’Our December 2024 target for Nifty is set at 25,000 wherein we have valued Nifty at 20x PE on FY26E EPS of ₹1,250/share with corresponding Sensex target set as 83,250; offering a potential upside of ~15 per cent from current index levels,” said Pankaj Pandey, Head Research, ICICIdirect.
Key events to monitor in 2024 include the impending quarterly earnings season, the Budget, and the General elections, along with the Fed rate decision and the US presidential election, as emphasized by analysts. Market observers emphasize that the market’s upward momentum in 2024 is likely to be fueled by factors such as consistent domestic mutual fund inflows, the resurgence of foreign buying, robust economic growth surpassing expectations, and strong corporate earnings.
“Sliding crude oil prices is likely to keep inflation under check, all of which should augur well for Indian equity markets going ahead. The rally in the market is likely to further continue over the next three-six months and Sensex, Nifty could see another five-seven per cent appreciation while mid-cap, small-cap indices may witness another 10-15 per cent jump,” said Rakeshh Mehta, Chairman of Mehta Equities Ltd.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.