Markets in CY 2023:The Indian share market has staged a strong show in the calendar year 2023 with benchmark indices Sensex rising over 18 per cent year-to-date (YTD) and Nifty 50 soaring over 20 per cent.

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According to Zee Business Research, among the Nifty 50 stocks, the top gainers for the year were Tata Motors, which gained over 101 per cent, Bajaj Auto, which soared 87 per cent, NTPC, which was up 69 per cent, L&T, which rose 50 per cent and Ultra Tech Cement, which surged 50 per cent.

The Indian equity market in 2023 has experienced significant growth, thanks to record-high collections in the mutual fund (MF) industry. This reflects the robust participation of domestic investors. Simultaneously, the primary market has been vibrant, and foreign institutional investors (FIIs) are showing increased interest, indicating a strong sense of confidence in the Indian market, said Kenneth Andrade, founder, director of Old Bridge Capital Management, and CIO of Old Bridge Asset Management.

"However, as we look ahead to 2024, there are areas of caution. Excesses in the small and microcap space raise concerns, and there is an anticipation of volatility, especially in segments where valuations appear stiff. Despite these short-term challenges, the overarching trend seems to favour India, presenting a higher growth potential relative to peer countries in the region," Andrade added.

In the broader market, the Nifty Mid Cap 100 and Small Cap 100 gave positive returns to investors by rising 46.57 per cent and 56.62 per cent, respectively.

High-beta Nifty Bank gained 12.34 per cent YTD. A high-beta is a basket of stocks that exhibit greater volatility than a broader market index. All stocks in the Nifty Bank basket rallied.

Individually, YTD, Punjab National Bank gained over 69 per cent, IDFC First Bank gained over 51 per cent, IndusInd Bank rose over 31 per cent, Bank of Baroda rose over 24 per cent, AU Small Finance Bank soared 20 per cent and Axis Bank gained over 18 per cent, Federal Bank gained over 12 per cent, ICICI Bank rose over 11 per cent, HDFC Bank, State Bank of India (SBI) and Kotak Mahindra Bank rose over 4 per cent and Bandhan Bank rose over 3 per cent.

Among other sectoral indices, Nifty Auto gained over 46 per cent, Nifty IT soared 23 per cent, Nifty Metal rose over 15 per cent, Nifty Pharma climbed 34 per cent and Nifty PSU Bank gained 31 per cent.

"As we navigate the landscape of India's equity markets, the resilience displayed by corporate India and the strategic opportunities in both the manufacturing and services sectors are encouraging. Caution is advised in certain segments due to potential overvaluation; the fundamentals remain robust," the expert said further.

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