Market Update – March 2024

Global markets continued the positive momentum in February 2024, with most ending the month with good gains. Shanghai (+8.1%), Japan (+7.9%) and Hong Kong (+6.6%) were the major gainers, while US S & P 500 and Nasdaq soared to a record high gaining 5.2% and 6.1% respectively in February. Indian markets lagged global markets. While the large cap index Nifty 50 gained a small 1.2%, broader markets were flattish for the month with the S & P BSE SmallCap down by -1.1% and S & P BSE Midcap gaining 1.5%. Sector-wise, all sectoral indices ended with small gains, except for FMCG, which was down 2.2%.

Market Outlook

Macro-economic news flow for India continues to be strong, with almost all parameters showing strength and improvement. Corporate profits also continue to be strong with the next two years PAT growth expected to be 15-17% CAGR. Elections due in April/May 2024 are expected to be in line with expectations. Globally all things have stabilized with both inflation and interest rates having clearly peaked. Stable crude prices are also positive for India.

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