FY 2024 It was a tremendous return giver for the Indian stock market. Large cap, mid cap and small cap stocks gave handsome returns to investors. Vinod Nair, Head of Research, Geojit Financial Services, said that large cap gave a return of 33 percent, mid cap increased by 56 percent and small cap left everyone behind and gave a spectacular return of 63 percent.
benefited from the strength of the economy
The market got a boost from the growth in the economy in FY 2024. On a quarter-on-quarter basis during the year, the GDP forecast was raised from 6.4 percent to 7.3 percent. He said corporate earnings growth was bullish with a 23-24 per cent annual EPS forecast for the Nifty 50 index.
Number of demat accounts crosses 16.7 crore
Retail inflows remained strong, supported by direct investment as well as investments through mutual funds. The number of trading accounts of domestic investors reached 167 million, underscoring the growing participation in the market. Additionally, FIIs showed improvement in net buying activity, encouraged by India’s better performance compared to other emerging markets facing recession, he said.
The year ended in recession
However, the year ended bearish, with heavy selling pressure by March 20. Nevertheless, there has been some relief in the market in recent trading sessions. Leveraged selling pressure has subsided and buying activity has improved, albeit in smaller volumes. He said, in the coming first week of April, important data like PMI in the US and India, factory orders and unemployment in the US are expected to be released. Apart from this, investors will keep an eye on the signals on policy rates especially from RBI.
High expectations from these three sectors
He said, “As we are going into a new financial year, we have high expectations from sectors like pharma, capital goods and infra.” He said, however, currently some sectors like FMCG and IT are facing challenges due to low demand. Going forward, we expect a turnaround due to normal monsoon and increase in US demand following the Fed’s rate cut. Although the focus is on large caps, the premium valuations of mid-caps may be a problem in the short to medium term.
Input: IANS
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