Global headwinds, rate hike concerns to keep investors on guard in 2023

Investors are relieved about the returns this year, which happened despite record FPI outflows and are slightly circumspect about the next year considering the headwinds

The Sensex and Nifty ended 2022 with 4.4 per cent and 4.3  per cent gains respectively, the seventh consecutive year of gains. A seven-year consecutive return happened only once in the past, between 1988-94 when the Sensex posted double-digit gains every year during this period. The Sensex ended the next two years with declines. In 1995 the Sensex declined 20.8 per cent. The longest winning streak of Nifty was from 2002-2007, and in 2008 it declined by 52 per cent.

Investors are relieved about the returns this year, which happened despite record foreign portfolio investor (FPI) outflows and are slightly