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As we step into a new fiscal year, we look at how the markets performed in the year gone by. Even as the US Fed continued to raise interest rates in FY24, Indian bond yields declined by nearly 26 bps. The Indian equity market was among the better performing indices in the world. Indian small- and mid-cap indices outperformed the large-cap index. Among sectors, realty was the best performer, while the media index was the worst performer. The rally in the Indian equity market was largely driven by strong DII inflows, while FPI flows were positive for the first time in three years.
During the year, yield differential between Indian and the US 10-yr bonds reduced from nearly 3.8 per cent to 2.9 per cent
Among the major world indices, Japan Nikkei 225 had a stellar year ( nearly 43 per cent) and was one the best performers. The Indian equity index Nifty (nearly 29 per cent) outperformed the MSCI world index ( nearly 23 per cent) and many developed market indices.
Recent volatility notwithstanding, the BSE SmallCap (nearly 60 per cent) and BSE Midcap (nearly 63 per cent) outperformed the large-cap (nearly 32 per cent) by a huge margin in FY24
Among the Nifty sectoral indices, Realty (nearly 133 per cent), PSU Banks ( nearly 89 per cent) and Auto (nearly 75 per cent) indices were the top performers, while returns from the Media ( nearly 6 per cent) index was the worst
DII inflows continued to remain strong with investments of over ₹1.8-lakh crore for the third consecutive year. Unlike in FY22 and FY23, FII flows were positive in FY24 albeit only marginally.
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