 "stocks brokers, markets, sensex, nifty, stock market")
India's market cap gained 26 per cent to touch $4.2 trillion in 2023 and it added $900 billion in market cap, equivalent to the entire market cap of countries such as Brazil, Sweden and Netherlands, as per data analysed by Pantomath Capital Advisors.Indian equity emerged as one of the best-performing markets in last two years. In 2023, benchmark indices soared to unprecedented highs, with the Nifty and Sensex scaled milestones of 21,000 and 70,000 mark, respectively while the NSE Midcap 100 and NSE Smallcap 250 advanced 40.9 per cent and 42 per cent, respectively in the calendar year 2023.
Domestic SIP inflows emerged as a key source of retail inflows in equities, reaching Rs 130 billion in fiscal 2023 and is projected to reach Rs 153 billion in FY 24.
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"The Indian corporate earnings began showing improvement, with companies benefiting from a softening in commodity prices, leading to enhanced profitability and margins. Companies are expected to continue strong performance in the upcoming quarters, driven by a robust domestic demand environment, positive macroeconomic factors and private capex revival. A record capex of Rs 26 trillion vis-à- vis Rs 10-12 trillion four years back will continue to foster momentum," said Mahavir Lunawat, Managing Director, Pantomath Capital Advisors.
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Since the start of January 2023, 53 companies have completed IPOs, raising more than Rs 44,469 crore.
" In the past three years, 153 mainboard IPOs have come for listing . Of these, the majority of the companies are from sectors such as healthcare, chemicals, capital goods and finance. Also the IPO subscription ratio has been on the higher side with some IPOs getting subscribed more than 100x," note the report.
Out of these 153 IPOs, 76 per cent have given positive returns from the issue prices.
"But with more than 60 per cent of the IPOs getting subscribed more than 10x, it is difficult to get allotment. Hence it is better to gauge the IPO's performance from the listing price. From the listing price, 38 per cent have given negative returns, while 44 per cent have underperformed Nifty. Only 12 per cent of IPOs have been multi baggers and give returns of over 100 per cent," noted the study by Pantomath.
"In the forthcoming months, there is anticipated to be significant momentum in the Indian IPO market, encompassing both the main and SME market segments. The market environment has been extremely buoyant and is likely to witness a robust capital raise FY24-25 as well," said Lunawat.
On the regulatory front, market regulator Sebi enhanced the efficiency of Initial Public Offerings (IPOs) by halving the timeline for listing shares on stock exchanges after the IPO closure. Under the revised guidelines, IPOs will now be mandated to list within three working days (T+3 days) after the closure of the IPO, in contrast to the previous requirement of six working days (T+6 days).
"This move aims to provide substantial benefits to both investors and issuers in the capital markets”, said Lunawat.
"In 2023, the Indian central government pushed policies and initiatives to boost several key sectors of the economy, aiming for overall growth and development. Their focus on creating both physical and digital infrastructure, as well as the areas of manufacturing, fintech, green growth and new technologies," said the report.
These priority sectors - railways, agriculture, telecom, defence, manufacturing and real estate, will be supported with government investment & policy reforms.
"In 2023, the Indian central government pushed policies and initiatives to boost several key sectors of the economy, aiming for overall growth and development. Their focus on creating both physical and digital infrastructure, as well as the areas of manufacturing, fintech, green growth and new technologies," said the report.
These priority sectors - railways, agriculture, telecom, defence, manufacturing and real estate, will be supported with government investment & policy reforms.
Key Policy Reforms that Changed the Game in 2023:
- Production Linked Incentive for 14 key sectors to enhance India’s manufacturing capabilities and Exports.
- Over 1,14,000 startups spread across all 36 States and UTs of the country create more than 12 lakh jobs.
- Alternative Investment Funds (AIFs) invested Rs 17,272 crore in 915 startups.
- More than 2,55,000 approvals were facilitated through National Single Window System.
- Make in India 2.0 focusing on 27 sectors to make India a Manufacturing Hub
- PM Gati Shakti becomes mainstream across Government.
- Unified Logistics Interface Platform successfully integrates with 35 systems of 8 Ministries covering 1800+ fields.
