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MARKET PERFORMANCE

BROAD MARKET UPDATE

* Domestic equity market soared in CY 2023 (~20%) after a modest CY 2022 (~4%).

* The year 2023 had a lackluster start due to Adani Hindenburg report and US banking crisis.

* Markets made a sharp recovery from the 2nd quarter fueled by domestic macro, +ve global cues, FII flows and moderation in crude prices.

* Domestic equities ended the year on a high with a dovish Fed policy and favorable state election results.

MARKET PERFORMANCE

GLOBAL MARKETS PERFORMANCE

* 2023 was a tremendous year for global equity markets with developed market equities outperforming the emerging market equities.

* Geopolitical risks continued to dominate news throughout the year with RussiaUkraine war and Israel Hamas conflict.

* Global equities were primarily impacted by global monetary policy, collapse of key banks in US and Euro region, optimism around artificial intelligence, global bond yields and slowdown in China.

MARKET PERFORMANCE

SECTORAL PERFORMANCE

* All major sectors gained in 2023. Realty gained the most for the month.

* Realty (82%) and Auto (47%) made the highest gains while Bank (12%) was the lowest performer.

* The bulk of stock performance for banks was driven by earnings growth with little or no expansion in P/E multiples.

MARKET PERFORMANCE

MARKET CAP PERFORMANCE

* 2023 was the year of mid and small caps.

* Mid-cap and small cap indices significantly outperformed the large cap index.

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