December was a strong month for equity markets globally in what is usually termed as a “Santa Claus” rally. Indian markets emerged as the best-performing market with benchmark Nifty gaining a strong 7.9%. The RBI, as expected, maintained the status quo on rates and kept their stance unchanged, while the Fed held rates at 5.25%-5.5% for a third straight time and laid out the timeline for rate cuts in 2024.
Indian markets are entering CY24 on a high note and with a high base. India has been amongst the best performing markets and is at all time high levels. Crude oil prices have also corrected below $80 per barrel, despite the war in West Asia. We believe that a combination of higher US shale oil production, benign demand growth, attractive renewable energy prices and huge innovation related disruption like EVs, hydrogen, etc.; will ensure that oil prices stay meaningfully soft over the medium to long term.