Indian Equity Market’s Strong Performance Amidst Global Economic Uncertainty

Indian Equity Market's Strong Performance Amidst Global Economic Uncertainty

VoM News Desk | January 2, 2024 | 02:54 PM IST | Breaking News | Follow on Google News

Indian Equity Market’s Strong Performance Amidst Global Economic Uncertainty/PTI

Indian Equity Market’s Strong Performance Amidst Global Economic Uncertainty

Despite a challenging global economic landscape in calendar year 2023, the Indian equity market displayed resilience, showcasing robust growth. Both benchmark indices, Nifty50 and S&P BSE Sensex, surged to new heights, generating impressive double-digit returns. As a result, India’s share in global market capitalization soared to an unprecedented 3.8% in December, marking a significant uptick from its historical average of 2.6%.

This noteworthy surge can be attributed to a confluence of positive domestic factors, supported by substantial liquidity inflows from both foreign and domestic investors. Additionally, the anticipation of a potential interest rate reduction cycle by the US Federal Reserve in 2024 has contributed to sustaining optimism in the equity market.

However, juxtaposed against these favorable aspects are potential concerns, particularly leading up to the 2024 general elections, which might introduce a degree of nervousness among investors. Furthermore, from a valuation standpoint, India remains relatively expensive, with its one-year forward price-to-earnings multiple positioned at a premium compared to its Asian counterparts.

As the market traverses through these dynamics, the optimism stemming from positive domestic drivers and the anticipation of global monetary policy shifts is counterbalanced by apprehensions surrounding the impending general elections and the comparatively high valuation in the Indian market.

VoM News Desk

VoM News is an online web portal in jammu Kashmir offers regional, National & global news.