- The SENSEX hit an all-time high of 72,281.63 on December 28.
- Tata Consumer Products crossed ₹1 lakh crore market capitalisation.
- Tata Motors became the only Nifty 50 stock to double its price this year.
- NIFTY50 and SENSEX registered double digit gains this year.
A year has flown by, and what a year it has been! As 2023 draws to a close, there’s a lot to celebrate. The last week of the year continued with the bullish trend. We saw yet another set of highs as the key indices touched fresh peaks.
Both key benchmark indices, NIFTY50 and SENSEX, ended the year on a positive note hovering near all-time high levels. This is despite the fact that the equity markets closed lower on the last trading session of 2023, December 29, ending a five-day gaining streak.
The benchmarks experienced a robust revival in 2023. This was spurred by heightened domestic demand, an improving capital expenditure cycle and expectations of US Federal Reserve rate cuts.
Remarkably, the markets remained unfazed by global challenges. Factors like the banking crisis in the US, Israel-Hamas conflict, decade-high global interest rates couldn’t deter investor spirit. The resilience in these testing times was attributed to the unwavering support of retail investors on Dalal Street.
The rally in the last week of 2023
On the morning of December 28, bullish sentiment dominated the market, propelling the benchmark BSE SENSEX and NIFTY 50 to unprecedented heights of 72,281.63 and 21,728.3, respectively. The Realty index was the top gainer among sectoral indices on a year-to-date basis.
Overall, this led the Indian market capitalisation to surpass $4 trillion this year.
This rally was fueled by robust global cues, a decline in bond yields, and a weakening dollar. Simultaneously, the NIFTY Bank index achieved a new peak, reaching 48,589 in the opening trades.
Tata Consumer Products joins ₹1 lakh crore club
Another Tata group company joined the high table of ₹1 lakh crore market cap companies. During Friday's trading session, Tata Consumer stock surged 5%, taking its market capitalisation to ₹1,00,964 crore.
In addition to Tata Consumer, other Tata Group companies like Tata Consultancy Services (TCS), Titan, Tata Motors, Tata Steel, and Trent have also crossed the ₹1 lakh crore market capitalisation.
Trent achieved this feat in December, becoming the fifth Tata Group listed company to reach this milestone.
Tata Motors shares rise over 100% in 2023
Tata Motors didn't just climb the NIFTY50 ladder, it whizzed through — doubling its stock price in 2023.
Its stock surged more than 6% to hit a fresh 52-week of ₹802.6 apiece on the BSE on Friday. The stock ended in green with its year-to-date gain reaching 102.32%.
What’s on the cards in 2024?
Early 2024, analysts say, may see a surge in domestic growth, thanks to consumer spending fuelled by election spending. The latter half of 2024 might experience an increase in investment growth as private spending accelerates, reflecting the policy priorities of the newly-formed government.
As we inch close to the 2024 general elections, the banking sector stands at the cusp of significant gains. According to market experts, if the Federal Reserve opts for rate cuts, the Reserve Bank of India is likely to follow suit. This is expected to alleviate deposit rates, further bolstering net interest margins.
Big IPOs next year
In 2024, five initial public offerings (IPOs) are likely to capture investor attention. SoftBank-backed food delivery platform Swiggy is expected to launch its IPO in the early months of the year.
Pune-based startup FirstCry, specialising in online retail of childcare and mothercare products, is expected to initiate its IPO post the 2024 Lok Sabha elections. The company is expected to raise more than ₹1,800 crore. Brainbees Solutions Pvt Ltd, the parent of FirstCry, has already filed its Draft Red Herring Prospectus (DRHP) for the IPO with market regulator SEBI (Securities and Exchange Board of India).
Electric vehicle startup Ola Electric plans to launch its IPO in January or February 2024. The EV arm of Ola aims to raise around ₹5,500 crore. The company will utilise the funds to establish its first factory in Tamil Nadu.
Hospitality major OYO Hotels and Homes is also likely to launch its IPO in mid-2024, seeking to raise between ₹7,000 and ₹8,000 crore.
Final words
So overall, things are looking up. As we change out our calendars, the financial market puts out a promising outlook for the year ahead.
Happy Holidays and Happy New year, folks!
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