Indian stocks close 2023-24 firm, indices gain up to 31%

Indian stock market indices closed the financial year 2023-24 on a firm note, backed by firm economic growth forecasts by various global watchdogs and political stability at the federal level.

Sensex settled 0.88% or 639 points higher at 73,635 points, and Nifty 0.92% or 203 points at 22,326 points on Thursday, the last session of 2023-24.

On Friday, the market was shut for Good Friday.

On Thursday, the equity market extended gains and almost retested the record high. Over the past 12-month, the indices accumulated about 27%-31% return on investment for the investors.

"Indian equities closed the day and fiscal year on an optimistic note, with volatility by the end of the session, as buying by retails, DIIS, and FIIS surged across categories," said Vinod Nair, Head of Research, Geojit Financial Services.

"The mid- and small-cap stocks have emerged as frontrunners, rebounding from the initial sell-off earlier in the month. An upgrade in the domestic economy forecast hints at an encouraging outlook for the stock market in new financial year. However, the emphasis is on large-cap due to the persisting premium valuations of mid-cap stocks, which could pose a concern on the broad market in the short to medium term."

Emkay Institutional Equities, a part of Emkay Global Financial Services Limited, maintains its stance of Nifty to remain at 24,000 level. Emkay expects the market to rebound in 3-6 months, when Small and Mid Caps would start to outperform again.

Foreign portfolio investors who had aggressively sold Indian stocks and turned net sellers in the Indian equity market in January 2024 became net buyers in February and March. This has also likely buoyed the stocks of late.

The mid- and small-cap stocks have emerged as frontrunners, rebounding from the initial sell-off earlier in the month. An upgrade in the domestic economy forecast hints at an encouraging outlook for the stock market in new financial year