Equity investors reap bountiful rewards in FY24 amid market surge

Equity investors reap rewards: The financial year 2023-24 (FY24) proved to be a rewarding period for equity investors as stock markets delivered stellar performances, outpacing other asset classes, analysts noted.

Boosted by robust economic growth fundamentals, improved corporate earnings, and flows from both domestic and foreign investors, the Indian equity market witnessed remarkable gains.

Key indices such as the Sensex and Nifty 50 soared, registering impressive gains of 25 per cent and 29 per cent, respectively, over the fiscal year.

Moreover, the broader markets showcased remarkable strength, with the Nifty Midcap 100 index surging by 60 per cent and the Nifty Smallcap 100 index advancing by a staggering 70 per cent.

The surge in market indices was accompanied by individual stock performances, particularly in the mid- and small-cap segments. Shares of companies like REC, Mazagon Dock, BEML, Hindustan Aeronautics, IRFC, IRCTC, and BHEL witnessed exponential growth, with some stocks quadrupling in value.

Arvinder Singh Nanda, Senior Vice President of Master Capital Services, advised investors to maintain positions in high-quality stocks with strong balance sheets and market leadership positions. He stressed upon the importance of booking profits in stocks trading at higher valuations while remaining bullish on sectors like PSU, Renewable Energy, and healthcare for fiscal year 2025.

India's robust economic expansion, coupled with favourable market valuations, attracted major funds from global investors.

Foreign Portfolio Investors (FPIs) turned net buyers, injecting Rs 2,04,169 crore into Indian equities during FY 2023-24, marking a pivotal shift from previous years where they were net sellers.

Despite the overall bullish sentiment, there were notable losers among Nifty 50 stocks, with HDFC Bank and Hindustan Unilever Limited (HUL) recording negative returns of 11 per cent each. However, the broad-based nature of the market rally was striking, with all sectoral indices posting gains over the fiscal year.

Sectors such as realty, PSU, power, and auto emerged as frontrunners, witnessing notable growth.

Additionally, a major portion of Nifty constituents recorded impressive gains, ranging from 60 per cent to 90 per cent, highlighting the resilience and strength of the Indian equities market.

Considering these factors, financial year 2024 proved to be a rewarding period for Indian equity investors, driven by robust economic fundamentals, increased investor confidence, and major inflows from both domestic and foreign sources, analysts further said.

Despite challenges and potential volatility, the outlook remains optimistic, with opportunities for further growth and investment.