The benchmark Nifty 50 recently scaled Mount 20K, in what is seen as a testament to the resilience of the Indian stock market. Market observers believe this is only the beginning of another bull run. Let’s take a look at the structure of the domestic equity market at its peak
The returns delivered by Nifty in the past 10 years until September 15 stood at 245 per cent, beating major global markets such as China’s Shanghai Composite (up 39 per cent) and the UK’s FTSE 100 (up 17 per cent). The price-to-earnings ratio of the Nifty 50 index on September 15, 2023, was 22.8 times, which was still lower than its historical 10-year average of 24.45 times. This provides further headroom for new highs
FIIs are the largest institutional investors, although promoters still control over half of the market
Rs 6.40 lakh crore was the cumulative consolidated profit of the Nifty50 companies in FY23, up nearly 190 per cent against Rs 2.2 lakh crore in FY13
Domestic investors are now giving foreign investors strong competition in terms of yearly investments
Consumer sectors, IT, financials and healthcare have delivered solid returns to investors in the past 15 years
Financials account for the largest share (24 per cent), while real estate has the least (1 per cent) in the total m-cap (around $4 trillion) of listed companies in India
Despite several challenges, including the global financial crisis and Covid-19, the Nifty 50 has delivered an average EPS growth of 12 per cent over the past two decades
Brokerages see more upside in the Indian equity market in the next 3-12 months