In FY23, Indian stock markets saw events such as aggressive monetary policy, the Russia-Ukraine conflict, and, last but not least, the US-Europe financial crisis, resulting in a rocky ride for markets not just in India but across the world. Nonetheless, the Indian markets closed the fiscal year on a flat note as local investors remained optimistic in the country’s economic narrative and stayed invested during the final few months, even as foreign institutional investors sold Indian equities.
“In FY23, we saw decadal high inflation, an assertive monetary policy stance by global central banks in terms of interest rate rises, a financial crisis in the United States and Europe, and the continuation of the Russia-Ukraine conflict. “Due to all of the obstacles, Indian markets are projected to close the fiscal year on a flat note,” said Srikanth Subramanian, CEO of Kotak Cherry.
The Sensex and Nifty completed FY23 with about 1% increases apiece, although both markets lagged their Asian rivals throughout the year. In the face of recessionary headwinds, slowing demand, and an unanticipated banking crisis, the Nifty IT index remained the top laggard in FY23, plummeting 21%, the most since the financial crisis in FY09. In contrast, public sector banks continued to thrive, as seen by the 37% increase in the Nifty PSU Bank index in FY23, marking the third consecutive year of gains.
Even as other equities suffered from a variety of issues, ITC remained the most steady frontline stock in FY23. Other top Nifty stocks that achieved strong returns this year were M&M, Britannia, and NTPC. Wipro, Divi’s Laboratories, and Hindalco, on the other hand, were the top Nifty losers in FY23.
Stocks such as RVNL (Rail Vikas Nigam Limited), Karur Vysya Bank, and Finolex have increased between 100 and 300% in FY23 alone, capturing the attention of all investors.
“With inflation slowing down over the last few months, it would be important to see how this pans out in the first half of FY24 along with the developing situation of banking sector in US and Europe. The regional banks specifically in the US are battling a crisis of confidence, and many customers are seen adopting ‘flight to safety’. We expect volatility still to persist as we head into FY 24,” said Subramanian.