The Aryavarth Express
Agency(New Delhi): India’s benchmark Nifty 50 index has skyrocketed by nearly 29% in the financial year ending March 31, 2024, marking its best performance since the post-COVID bounce in fiscal 2021. The surge in domestic equities has been fueled by India’s booming economy and substantial fund inflows, which have contributed to a remarkable year for the country’s stock market.
The rally in Indian equities has led to a staggering $1.5 trillion, or roughly 49%, increase in the overall market capitalization of all National Stock Exchange (NSE) -listed stocks over the past twelve months, reaching a near-record high of $4.56 trillion. India’s growth has also outpaced its Asian counterparts, with the domestic economy on track to achieve a growth rate of 7.6% in fiscal 2024, the highest among large economies.
Domestic mutual fund investors have been net buyers in equity-oriented schemes for 36 consecutive months, with investments through systematic investment plans (SIPs) reaching multiple record highs over the last 11 months. Foreign portfolio investors (FPI) have also turned buyers in Indian equities after being sellers in the previous two financial years, investing 2.04 trillion rupees ($24.46 billion) in fiscal 2024, as of March 27. This marks the second-highest FPI inflow into Indian equities, following the surge in foreign investments after the COVID-19-induced slide in global stocks in fiscal 2021.
All 13 major sectors advanced in fiscal 2024, with realty , state-owned banks, auto, and energy leading the gains, adding between 70% and 135%. Despite recent underperformance due to valuation concerns in March, small and mid-caps outperformed the benchmarks, adding 70% and 60%, respectively, during the period. Only three of the Nifty 50 stocks – UPL, HDFC Bank, and Hindustan Unilever logged losses in fiscal 2024.