As the year comes to a close, domestic equity markets are experiencing a bull run because to retail optimism and dovish Federal Reserve wagers. The benchmark indices experienced some minor profit-booking in the early trade on December 29, 2023, ahead of the closing bell, following their record-breaking session.
As of 10am, the NSE Nifty 50 was down 53 points, or 0.2 percent, to 21,725 levels, and the BSE Sensex was down 188 points, or 0.2 percent, to 72,222 levels.
Year-to-date, the Nifty 50 is expected to gain by 20% and the BSE Sensex by more than 18% by the end of 2023.
believes that there will be a little profit-booking on December 29, 2023, the last trading day, but the overall outlook is still favourable. “We have seen a 1,800-point increase from the lows throughout the course of the entire month. It’s important to recognise that slight declines are normal and will keep the market in good shape.
urged investors to temper their expectations at the beginning of the year because markets are trading above historical averages.
“Historically, ahead returns eventually drop down when the Nifty trades at a 22x price-to-earnings (PE) ratio. Therefore, while there may be more gains in the upcoming sessions, as 2024 approaches, there will inevitably be a consolidation or correction air pocket.”
At the broad end of the market, mild profit-booking was also expected, as seen by the Nifty Midcap 100 and Nifty Smallcap 100 indexes falling 0.1 percent each in the opening hour of trade. Meanwhile, the India VIX fear indicator stayed close to its levels from nine months ago.
All sectoral indices fell on December 29 morning trades, with the exception of the Nifty Auto and FMCG indices. The Nifty Oil & Gas, Metal, and PSU Bank indices, which have experienced a recent surge, have emerged as the worst laggards.
The general belief in the market was that since India’s underlying macroeconomic fundamentals are still strong, investors should take advantage of every “dip” to “buy” rather than “sell.”