Nifty midcap100 up 44% while Nifty smallcap100 surges 54%

NEW DELHI:

Domestic markets are ending the year 2023 on a buoyant note as Nifty scales above 21,500 mark while Sensex crosses 71,000. Investor’s sentiments got a big boost in November and December which helped both domestic as well as global markets scale new high, says a report by Motilal Oswal Broking and Distribution.

The IPO market was very vibrant, following the bullish trend in the secondary market. 58 IPOs came to the market for subscription to raise funds worth Rs 48,000 crore against 40 IPOs last year (total issue size of Rs 64,000 crore).

Going ahead, the pipeline remains strong with sharp increase expected in new-age tech IPOs, including Ola Electric, Swiggy, FirstCry, Mobiwik, the report said.

India's macro and micro fundamentals remain strong and are helping the market to scale new highs. Nifty has given returns of 18 per cent in 2023 so far. Despite this up-move, Nifty is trading at a 12-month forward P/E ratio of 19x, which is at a discount to its 10-year average of 20x.

Midcap and smallcaps witnessed huge rally with Nifty Midcap100 up 44 per cent while Nifty smallcap100 surged 54 per cent. PSUs, realty, auto along with several niche sectors like power, defence, shipping, fertilizer, EMS saw huge buying interest, the report said.

PSU Banks sharply outperformed private banks as they are now well placed to sustainably deliver 1 per cent RoA and have scope of earnings upgrade.

All this has led to an upgrade in India’s rating as well as GDP growth forecast by various global firms, resulting in BSE-listed companies’ market-cap crossing all time high of $4trillion mark. Infact NSE overtook Hong Kong stock exchange to become world’s 7th largest exchange by market cap.


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