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According to Motilal Oswal Asset Management Company’s Global Market snapshot report, In December 2023, the Indian stock markets experienced a notable upturn, as evidenced by an 7.94% surge in the Nifty 50 index. While, all the major indexes gave positive returns in December 2023, The Nifty Next 50 index outperformed, leading the gains with an impressive growth of 11.09%. Nifty Smallcap 250 and Nifty Midcap 150 rose by 5.96% & 6.98% respectively, continuing their positive momentum.

Across the board, all sector indices closed the month on a positive note. The energy sector emerged as the top performer, witnessing a substantial increase of 14%.

Factor-based investment strategies, including Momentum, Low Volatility, Quality, and Value, all delivered positive returns for. December. Value factor emerged as the frontrunner, registering the highest rise at 13% during the month and Quality factor also witnessed an increase of 11%.

The Financial Services sector continued to play a pivotal role in propelling the Nifty 500 index, contributing 2.1% to the overall 8% increase in Nifty 500 during December 2023.

Global Market Update

In the US, S&P 500 and NASDAQ 100 both experienced 4% & 5% gains in December 2023 respectively, with the Information Technology sector being the largest contributor to the S&P 500’s rise. Globally, both emerging and developed markets saw positive performance, with an exception to China which shown a negative 2.5%. Brazil, South Africa and Korea, witnessed an increase of 6% in December 2023.

Crude oil prices nosedived by 6% during December due to rising geo-political risks, low demand from the US and mixed Chinese data. On the commodities front, gold prices witnessed a rise of 2% and silver saw a decline of 5%, amid rising tensions in the middle east. Cryptocurrencies like Bitcoin and Ethereum went soaring at 12% and 11%, respectively.

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