The report from Motilal Oswal Financial Services reveals interesting trends in the market performance across various segments in the year 2023. Mid and small-cap stocks have notably outperformed large-cap stocks, showing a remarkable rise of 36 per cent and 46 per cent, respectively, compared to the 11 per cent increase in the Nifty index during the same period.
In November 2023 specifically, midcaps and smallcaps continued their outperformance, exceeding largecaps by 4.9 per cent and 6.5 per cent, respectively. The Nifty index, following a consolidation phase in October, surged by 5.5 per cent month-over-month in November. Despite significant volatility, the index closed 1,054 points higher after fluctuating around 1,185 points throughout the month.
The broader market's robust performance was attributed to a global market resurgence and domestic investor confidence. Investor sentiment leaned towards the belief that the US Federal Reserve had concluded its rate-hike cycle. Strong institutional flows were observed, with Foreign Institutional Investors (FIIs) turning net buyers with an investment of $2.3 billion in November after two months of being net sellers. Additionally, Domestic Institutional Investors (DIIs) recorded inflows of $1.7 billion in November, following $3.4 billion in inflows in October.
Cumulatively, FIIs and DIIs have invested $14.4 billion and $20.8 billion, respectively, in the calendar year 2023.
On the global front, except for Russia, which experienced a 1 per cent decline month-over-month, key markets such as Brazil, Korea, Taiwan, the US, Japan, MSCI EM, India, Indonesia, the UK, and China saw positive gains in local currency terms in November 2023.
Over the last 12 months, the MSCI India Index has outperformed the MSCI EM Index by 7 per cent, showcasing India's market strength in this period. Additionally, over the past decade, the MSCI India Index has notably outperformed the MSCI EM index by a significant margin of 192 per cent, indicating a robust and sustained performance in the Indian market compared to the broader emerging markets.
(With Agency Inputs)
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