Sensex slides 170 points on last trading day of 2023 but zooms 19% for the year; Nifty ends at 21,731

Ira Singh
Khabar Khabaron Ki,29 Dec’23

The Indian equity benchmark indices ended the last trading session of 2023 lower snapping a five-day winning run amid weak cues from global peers and selling in index heavyweights.At close, the Sensex was down 170.12 points or 0.23 percent at 72,240.26, and the Nifty was down 47.30 points or 0.22 percent at 21,731.40. The market breadth favoured gainers over losers as about 1,758 shares advanced, 1,533 shares declined, and 54 shares unchanged.

Stocks and Sectors
Among stocks,. RIL, Infosys and bank stocks were among the top index drags. Broader markets, however, traded in the green.

Sectoral indices traded mixed. While Nifty Auto, Nifty Metal and Nifty FMCG indices rose up to 1.34 percent, Nifty Bank, Nifty Energy, Nifty Infra, Nifty IT, Nifty Pharma and Nifty PSU Bank traded half-a-percent lower.Nifty Midcap and Nifty Smallcap outperformed benchmark indices as they soared up to 50 percent in 2023.

On 29 Dec’23,the Indian rupee maintained its gaining momentum for the second straight session and appreciated 6 paise to close at 83.14 against the US dollar on Friday, amid a weak American currency against an unabated inflow of foreign funds. According to forex traders, subdued equity market sentiment and volatility in crude oil prices, however, resisted a sharp gain in the Indian currency.

Experts Take:
“As 2023 draws to a close, the most significant feature of the year’s rally is the sharp outperformance of the broader market. The midcap index is up by almost 45 % and the small cap index is up by 55% leaving the Nifty far behind with appreciation of around 20%. This trend is likely to be reversed in 2024 since the mid and small caps are overvalued and large caps are relatively fairly valued. January is normally a poor month for the market. Q3 results and management commentary will be keenly watched by the market,” said Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

Market experts have recommended six stocks to buy for Friday-Cipla, IGL, Exide Industries, Kotak Mahindra Bank, IEX and BHEL

The year 2023 had quite a few nerve-wracking rides in store, which kept equity market investors as well as corporates, banks and economists on the edge of their seats. Inflation remained the buzzword for the year, and the phrase ‘soft-landing’ elicited scoffs from all corners of the market. Chair Powell’s steadfast commitment to calming down inflationary waters has buoyed markets and led to an unanticipated bull run at the end of the year. By the middle of 2023, the US economy was being rattled to its core by the twin forces of an imminent recession and a severe, unsparing banking crisis.

Looking at the larger picture, 2024 promises to be another rollercoaster ride for the markets. Like a tightrope walker, investors would have no choice but to be vigilant in the new year!