As we enter a new financial year, we take a look at market trends over the past year. Indian government bond yields have fallen by nearly 26 bps even as the US Federal Reserve continues to raise interest rates in FY24. Indian stock market was one of the best performing indexes in the world. India’s small and medium cap index outperformed the large cap index. Real estate was the best performing sector, while media index was the worst performing. The rise in the Indian stock market was mainly driven by strong inflows from his DIIs, while FPI inflows were positive for the first time in three years.
During the year, the yield spread between 10-year bonds in India and the United States narrowed from nearly 3.8% to 2.9%.
Among the major world indexes, Japan’s Nikkei 225 had a great year (about 43%) and was one of the best performers. The Indian stock index Nifty (about 29%) outperformed the MSCI World Index (about 23%) and many developed market indexes.
Despite the recent volatility, BSE small caps (about 60%) and BSE midcaps (about 63%) significantly outperformed large caps (about 32%) in FY24.
Among Nifty’s sectoral indices, real estate (about 133 per cent), PSU banks (about 89 per cent) and auto (about 75 per cent) index performed best, while media (about 6 per cent) index returned the best.worst
Inflows into DII remained strong, with investments of over Rs 1,800 crore made for the third consecutive year. Unlike FY22 and FY23, his FII flow in FY24 was marginally positive.
https://www.thehindubusinessline.com/portfolio/in-charts-how-indian-equity-and-debt-markets-fared-in-fy24/article68020673.ece
