Dalal Street investors added Rs 80.62 trillion to their wealth in 2023, during a landmark year for the equities market, as a slew of good factors fueled a strong surge in stocks. According to experts, India's strong macroeconomic fundamentals, political stability as a result of the BJP's recent election victories in three key states, an optimistic corporate earnings outlook, signals from the US Federal Reserve about three potential rate cuts next year, and heavy retail investor participation all played a significant role in fueling the stock market rally in 2023. The 30-share BSE Sensex has risen 11,569.64 points, or 19%, through December 28.
So far this year, the market capitalisation of BSE-listed companies has risen substantially by Rs 80,62,310.14 crore to an all-time high of Rs 3,63,00,558.07 crore. The market worth of BSE-listed corporations touched a lifetime high after the closing of trade on Thursday.
Sunil Nyati, Managing Director of Swastika Investmart Ltd, stated that the Indian market has shown resilience, emerging as one of the outstanding performers within the larger emerging markets basket.
According to him, 2023 will be a terrific year not just for the Indian stock market but also for ordinary investors. "Retail investors, no longer prone to panic during corrections, are confidently holding onto their investments, ready to ride the wave of India's economic ascent," he went on to say.
On November 29, this year, the combined market worth of all listed businesses on India's major stock exchange, the BSE, surpassed the USD 4 trillion-milestone for the first time.
"The surge can be attributed to a confluence of factors, including impending elections, whispers of rate cuts in 2024, and a much-needed drop in energy prices, which has finally enticed foreign investors back into the fold." This inflow of foreign capital pushed largecap indices to new highs," Nyati explained.
After the market capitalization (m-cap) of all listed businesses on the BSE reached USD 3 trillion on May 24, 2021, it took only two and a half years to reach USD 4 trillion.
