Indian Markets Outshine Global Peers With Highest Equity Returns: Sebi Bulletin

December 2023 sees Indian equity markets beating all other developing economies, and also a resilient bond market. Read on to learn more.
Indian Markets,
Indian Markets, Equity, SEBI

India's domestic equity market witnessed a notable surge mobilising Rs 41,372 crore in December 2023 up from Rs 27,684 crore in November. Against the backdrop of a slow global economy, India stands out with Nifty and Sensex witnessing gains of 7.9 per cent and 7.8 per cent, respectively, in December, according to the Securities and Exchange Board of India (SEBI) in its latest bulletin.

India Stands Out In Global Economic Landscape

Among BRICS nations, India's Nifty Index registered an impressive 7.9 per cent increase, outperforming other emerging economies like Brazil (5.4 per cent) and South Africa (1.8 per cent). The global optimism, driven by expectations of central bank rate cuts, has fueled India's emergence as a standout performer in the international financial landscape.

Note that China’s SSE Composite Index, the market index of all stocks that are traded at the Shanghai Stock Exchange, is trading at the same level as 5 years back. According to Google Finance data, on March 1 2019 the index was at 2,904 higher than 2,845 where it stands today on January 18, 2023. Further Sebi cited the World Bank's Global Economic Prospects report, while the global economy is projected to grow by 2.4 per cent in 2024, developing economies are expected to grow at 3.9 per cent, showcasing the huge bounds India is making.

India's Bond Yields Vis-A-Vis Global Peers

Notably, India's bond yields stood at 7.2 per cent reflecting an investment-friendly environment compared to most other BRICS nations. Among BRICS Nations, at the end of December 2023, the highest 10-year government bond yield was observed in Russia (12.3 per cent), followed by S Africa (11.4 per cent), Brazil (10.4 per cent), India (7.2 per cent) and China (2.6 per cent).

Demat Accounts and Foreign Investments Surge

Indian market witnessed a surge in demat accounts, with NSDL adding 4.3 lakh and CDSL adding 37.5 lakh accounts in December 2023. The total number of demat accounts reached 3.46 crore with NSDL and 10.47 crore with CDSL at December end, Sebi bulletin said.

Foreign Portfolio Investors (FPIs) remained bullish, with net inflows of Rs 84,537.43 crore in December 2023. Equities attracted Rs 66,134.66 crore, and Rs 4,247.10 crore in hybrid in the month of December 2023, while the debt segment witnessed a net inflow of Rs 18,302.14 crore.

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