<p>The year 2023 has ended on a spectacular note as the Indian equity market achieved significant milestones and emerged as the seventh largest market globally, surpassing Hong Kong. Amidst both domestic and global challenges, Nifty scaled to new highs surpassing 21k levels, showcasing superlative returns of 20%. This robust performance was fuelled by strong corporate earnings and resilient economic growth.</p>.<p>As we enter into 2024, we expect optimism to only get boosted, amid hope of interest rate cuts. Further, the confidence of the investors regarding political continuity after the 2024 Lok Sabha elections are likely to strengthen sentiments.</p>.<p>This week domestic equities are likely to continue their uptrend on the back on strong domestic as well as global cues. Investors are expected to track economic data to be released globally, including December manufacturing data for United States, India, Europe and United Kingdom and inflation data for Europe.</p>.<p>Also, US Federal Reserve meeting minutes would be closely analysed as they would give insights into the Fed’s move towards interest rates.</p>.<p>The near term trigger is expected to be October-December quarter corporate results season, as companies will start reporting earnings from mid-January. Earnings are expected to be healthy across sectors driven by strong festive demand. Auto sector is likely to be in focus as carmakers will release monthly sales data.</p>.<p>Last week, Indian equities gained 1.8%, supported by positive global cues as investors expect rate cuts in early 2024. Broader market outperformed with Nifty Midcap100 and Nifty Smallcap100 up 2.4% and 2% respectively.</p>.<p>Among sectors Autos, FMCG and Metals were top gainers, up 3-4% each. On a monthly basis, December witnessed noteworthy performances across various sectors, with key indices reaching new highs. Nifty rallied 8% while Nifty Midcap100 and Nifty Smallcap100 surged 7.6% and 6.9%. respectively</p>.<p>Foreign Institutional Investors turned net buyers after selling for six consecutive days. For the month of December, FIIs bought Rs 31,960 crore worth of shares while Domestic Institutional Investors bought Rs 12,942 crore. However, for 2023 foreign investors were net sellers to the tune of Rs 16,510 crore while DIIs bought Rs 1,84,650 crore.</p>.<p>Oil marketing companies saw rally on account of fall in crude oil prices as easing in tensions around Red Sea reduced fears of supply disruption. Auto and EV stocks were in focus after the news that the government is working on a plan to replace 800,000 diesel buses with electric buses over the next seven years. Defense stocks continued their upward momentum on account of a surge in order book.</p>.<p><em>(The author is Head – Retail Research, Motilal Oswal Financial Services Limited)</em></p>
<p>The year 2023 has ended on a spectacular note as the Indian equity market achieved significant milestones and emerged as the seventh largest market globally, surpassing Hong Kong. Amidst both domestic and global challenges, Nifty scaled to new highs surpassing 21k levels, showcasing superlative returns of 20%. This robust performance was fuelled by strong corporate earnings and resilient economic growth.</p>.<p>As we enter into 2024, we expect optimism to only get boosted, amid hope of interest rate cuts. Further, the confidence of the investors regarding political continuity after the 2024 Lok Sabha elections are likely to strengthen sentiments.</p>.<p>This week domestic equities are likely to continue their uptrend on the back on strong domestic as well as global cues. Investors are expected to track economic data to be released globally, including December manufacturing data for United States, India, Europe and United Kingdom and inflation data for Europe.</p>.<p>Also, US Federal Reserve meeting minutes would be closely analysed as they would give insights into the Fed’s move towards interest rates.</p>.<p>The near term trigger is expected to be October-December quarter corporate results season, as companies will start reporting earnings from mid-January. Earnings are expected to be healthy across sectors driven by strong festive demand. Auto sector is likely to be in focus as carmakers will release monthly sales data.</p>.<p>Last week, Indian equities gained 1.8%, supported by positive global cues as investors expect rate cuts in early 2024. Broader market outperformed with Nifty Midcap100 and Nifty Smallcap100 up 2.4% and 2% respectively.</p>.<p>Among sectors Autos, FMCG and Metals were top gainers, up 3-4% each. On a monthly basis, December witnessed noteworthy performances across various sectors, with key indices reaching new highs. Nifty rallied 8% while Nifty Midcap100 and Nifty Smallcap100 surged 7.6% and 6.9%. respectively</p>.<p>Foreign Institutional Investors turned net buyers after selling for six consecutive days. For the month of December, FIIs bought Rs 31,960 crore worth of shares while Domestic Institutional Investors bought Rs 12,942 crore. However, for 2023 foreign investors were net sellers to the tune of Rs 16,510 crore while DIIs bought Rs 1,84,650 crore.</p>.<p>Oil marketing companies saw rally on account of fall in crude oil prices as easing in tensions around Red Sea reduced fears of supply disruption. Auto and EV stocks were in focus after the news that the government is working on a plan to replace 800,000 diesel buses with electric buses over the next seven years. Defense stocks continued their upward momentum on account of a surge in order book.</p>.<p><em>(The author is Head – Retail Research, Motilal Oswal Financial Services Limited)</em></p>