New Delhi, March 31 (IANS) FY24 proved to be a prosperous period for the Indian market, with large caps, midcaps, and small caps all showing significant returns as per Vinod Nair, Head of Research, Geojit Financial Services.
Boosted by an upgrade in the FY24 economy growth forecast, the Indian GDP saw an uplift from 6.4 per cent to 7.3 per cent on a QoQ basis during the year. Corporate earnings growth also saw a surge with a 23-24 per cent YoY EPS forecast for the Nifty50 index.
Retail inflows remained strong, aided by direct investments and investments through MFs, with the number of trading accounts held by domestic investors reaching 16.7 crore. Additionally, FIIs showed improved net buying activity, driven by India’s economic outperformance compared to other EMs facing slowdowns.
Despite ending on a subdued note with selling pressure until the 20th of March, the market has shown signs of relief in recent trading sessions as leveraged selling pressure eased and buying activity improved at lower volumes.
In the upcoming first week of April, significant data releases are expected, such as PMI in the US and India, factory orders, and unemployment data in the US. Market participants will also closely watch for signals on policy rates, particularly from the RBI, and Q4FY24 result forecasts for India, indicating a healthy performance.
Looking ahead, optimism is expressed towards sectors like Pharma, Capital Goods, and Infra as key growth drivers, supported by both domestic and external demand. While FMCG and IT sectors currently face challenges due to subdued demand, a turnaround is anticipated, driven by expectations of a normal monsoon and increased US demand post the Fed’s rate cut. The focus remains on large caps, considering the premium valuation of mid-caps could face hurdles in the short to medium term.
