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Shillong, July 4: According to a report by Motilal Oswal Financial Services, the global market cap has increased by 7.3% ($7.2 trillion) over the past year, while India’s market cap witnessed a significant jump of 17.2%. With the exception of Russia and China, all major global markets experienced growth in market cap.
In June 2023, the Nifty, India’s benchmark index, recorded its fourth consecutive monthly gain. The index reached a new peak, closing at 19,189 after oscillating 737 points, marking a 3.5% increase month-on-month. So far in the year, the Nifty has risen by 6%. During June, midcaps and smallcaps outperformed largecaps, with gains of 3.1% and 2.4%, respectively. Over the past 12 months, midcaps and smallcaps have outperformed largecaps, with increases of 35% and 28% compared to the Nifty’s 22% rise.
Foreign institutional investor (FII) inflows reached their highest level since September 2022. FIIs remained net buyers for the fourth consecutive month in June 2023, with inflows of $6.7 billion, bringing the year-to-date inflows to $11.2 billion. Conversely, domestic institutional investors (DIIs) saw muted inflows of $0.5 billion in June, following outflows in May. The year-to-date inflows for DIIs stood at $10.5 billion.
In terms of global markets, Brazil, Japan, the US, India, MSCI EM, Taiwan, and the UK ended higher in June 2023, with gains ranging from 1% to 9%. However, Korea and China ended lower in local currency terms, with declines of 0.5% and 0.1% respectively.
Over the past year, the MSCI India index has outperformed the MSCI EM index, with a 17% increase compared to a 1% decrease. In the last 10 years, the MSCI India index has outperformed the MSCI EM index by an impressive 178%.
After a tumultuous 18 months, the Nifty-50 index finally surpassed its all-time high and reached the 19,000 milestone in June 2023. However, this achievement was not without challenges. It took 425 trading days for the Nifty to move from 18,000 to 19,000, whereas the journey from 17,000 to 18,000 only took 31 days. With favorable macroeconomic conditions, stable oil prices, a strong fiscal balance sheet, and moderating inflation, the market outlook appears optimistic, as stated in the report.