India’s market cap outperforms global markets

Global market cap rose 7.3 per cent (US$ 7.2 Tn) over the last 12 months, while India’s market cap jumped 17.2 per cent Barring Russia and China, all key global markets witnessed a rise in market cap over the last 12 months, Motilal Oswal Financial Services said in a report.

The Nifty ended higher for the fourth consecutive month in June’23. The index oscillated 737 points before closing 655 points (or 3.5 per cent ) higher MoM at 19,189 – a new peak. The Nifty is up 6 per cent in CY23YTD.

Midcaps/smallcaps outperformed largecaps by 3.1 per cent /2.4 per cent in June’23. Similarly, over the last 12 months, midcaps/smallcaps have outperformed largecaps and have risen 35 per cent /28 per cent vs. a 22 per cent rise for the Nifty.

FII inflows are the highest since September’22. FIIs remained net buyers for the fourth straight month at US$ 6.7 bn in June’23; YTD inflows stood at US$ 11.2 bn. Conversely, DIIs – after reporting outflows in May’23 – saw muted inflows in June’23 at US$ 0.5 bn; YTD inflows stood at US$ 10.5 bn, the report said.

Among the key global markets, Brazil (+9 per cent ), Japan (+7 per cent ), the US (+6 per cent ), India (+4 per cent ), MSCI EM (+3 per cent ), Taiwan (+2 per cent ), and the UK (+1 per cent ) ended higher in June’23, while Korea (-0.5 per cent ), and China (-0.1 per cent ) ended lower in local currency terms.

Over the last 12 months, the MSCI India index (+17 per cent ) has outperformed the MSCI EM index (-1 per cent ). Over the last 10 years, the former has outperformed the MSCI EM index by 178 per cent, the report said.

After a roller-coaster ride of 18 months, Nifty-50 finally surpassed its all-time high and touched the 19,000 mark in June’23. The feat was not at all easy though!

Nifty’s journey from 18,000 to 19,000 took 425 trading days (from October’21-June’23) vs. only 31 days when it covered the journey from 17,000 to 18,000. With healthy macros, range-bound oil prices, a robust fiscal balance sheet and moderating inflation, the outlook for the market looks optimistic, the report added.