Top performer Stocks of the year 2023. Market stars! Do you own one?

Twitterati! 🌟 Join me if your day started with the intriguing tweet I’m about to discuss. Uday Kotak, the mastermind behind Kotak Mahindra Bank, recently shed light on a fascinating shift in India’s financial dynamics. He emphasized India’s shifting from a nation of savers to a nation of investors. In the early ’80s, where gold and land were preferred, to the current scenario of India embracing the joys of investing. As we move forward with presenting the Top performer Stocks of the year 2023, this transformation signifies a growing confidence in financial assets, bringing joy to savers turned investors.

Uday Kotak’s insights resonate with the evolving face of India’s economic landscape. In the ’80s, financial assets faced uncertainty, but today, the thrill of investing takes center stage, marking a significant shift. This transformation is not just a financial evolution but a reflection of a developing India, bringing immense joy and pride.

And guess what? Against the backdrop of this positive transition, domestic equity markets have consistently outperformed global counterparts in 2023. Despite global uncertainties, robust inflows from domestic investors have propelled benchmark equity indices to reach new record highs. Let’s delve deeper into the details and explore the unfolding momentum of Top performer Stocks of the year 2023. 📈 

8th Consecutive Year of All-Time High Performance for Sensex and Nifty.

In 2023, the Nifty experienced an impressive surge of over 20%, while the Sensex recorded a nearly 19% increase, marking their most robust performances since 2021 and the second-best since 2017. This remarkable growth was fueled by sustained inflows from domestic mutual funds, a resurgence of foreign investments, stronger-than-anticipated macroeconomic growth, and consistent corporate earnings.

Over the course of the year 2023, the Sensex soared by an impressive 11,399.52 points, reaching a lifetime high of 72,484.34. Simultaneously, the Nifty gained 3,626.1 points, settling at a new record of 21,778.70.

As per The Hindu, the benchmark index maintained its optimistic trajectory, achieving fresh highs due to the resolution of the Red Sea issue and a reversal in foreign institutional investor (FII) inflows. Furthermore, the decline in crude oil prices below prompted extensive buying, especially in oil and energy companies. This surge in purchasing was driven by the anticipation of the Federal Reserve implementing more aggressive rate cuts in the upcoming year.

Resilient Economy and the Ever-Rising FPIs

Foreign Portfolio Investors (FPIs) infused over ₹57,300 crore into Indian equity markets this month. The reasons behind this significant inflow include political stability, robust economic growth, and a steady decline in US bond yields. Yearly, FPI investments have now exceeded ₹1.62 lakh crore. As of 22nd December 2023, FPIs made a net investment of ₹57,313 crore in Indian equities, marking the highest monthly inflow in a year. Reported by CNBC TV18.

RBI Governor Shaktikanta Das emphasized India’s position as one of the world’s fastest-growing economies. He highlighted the robustness of the domestic financial system, backed by strong macroeconomic fundamentals, sound financial institution balance sheets, controlled inflation, an enhanced external sector, and continuous fiscal consolidation efforts.

Now Let’s discuss the Top performer Stocks of the year 2023 in various categories.

Top performer Stocks of the year 2023- Large Cap stocks

Large-cap stocks are the pillars of the financial markets, characterized by market capitalization exceeding Rs 20,000 crore. These blue-chip companies, known for their stability and financial robustness, have given a return of nearly 100-200% this year.

Data Collected on 29th Dec’ 2023- Source Equitymaster & Screener

Top performer Stocks of the year 2023- Mid Cap stocks

According to Bloomberg data, over the past year, the midcap witnessed a surge in their stock prices, with increases ranging from double to triple digits. Year-to-date, they recorded impressive rises within the range of 80% to 300% on the Nifty Midcap 150. The BSE Midcap achieved a new milestone, reaching a fresh record high of 36,889.87 while the Nifty Midcap 100 recorded a high of 46,248.65.

Data Collected on 29th Dec’ 2023- Source Equitymaster & Screener

Top performer Stocks of the year 2023- Small Cap stocks

According to Bloomberg data, in the last year, the top small-cap gainers recorded a double-digit rise in their stock prices, showing increases within the range of 150-350% year-to-date on the Nifty Small cap 250. On the last trading session of 2023, Small cap indices hit their fresh record highs of 42,728.21.

Data Collected on 29th Dec’ 2023- Source Equitymaster & Screener

Top performer Stocks of the year 2023- Penny stocks

The top performer penny stocks of 2023 are:

Data Collected on 29th Dec’ 2023- Source Equitymaster & Screener

It’s noteworthy that while these penny stocks have yielded exceptional returns this year, the fundamentals of some of these companies may not be attractive. Evaluating the underlying financial health and performance metrics of these companies is crucial. In some cases, market sentiment and short-term gains may overshadow long-term sustainability. 

Top performer Stocks of the year 2023- PSU Stocks

In a year marked by a remarkable resurgence, about one in every three PSU stocks on the BSE PSU index achieved spectacular comebacks, delivering returns of over 100%. Prime Minister Narendra Modi’s emphasis on infrastructure capex, defense indigenization, and the ‘Make in India’ initiative propelled this surge. These factors have prompted a favorable re-rating of PSU stocks, driven by their promising future prospects. Analysts suggest that PSU shares still have untapped potential for further upside.

Data Collected on 29th Dec’ 2023- Source Equitymaster & Screener

Will the Trend Continue?

In a conversation with Business Today, Sunny Agrawal, Head of Fundamental Equity Research at SBI Securities, expressed optimism about the Indian equity market staying robust in 2024. He suggested that the Nifty50 has the potential to yield an 8-12% return over the next 6-12 months.

Agrawal stated that following the outcomes of the five state assembly elections, the market anticipates the current ruling party securing a significant majority in the upcoming general election, ensuring political stability and policy continuity. Additionally, he mentioned that the dovish remarks from the US Fed governor have led the market to expect three rate cuts totaling 75 basis points in 2024.

Equity Research Analyst Deven Mehta from Choice Broking highlighted the robust performance of sectors like defence, railways, and PSU banks in 2023, driven by strong government policies. Looking into 2024, Deven Mehta, emphasized the pivotal influence of the general elections on these sectors. Anticipating a continuation of existing government policies, he foresees further outperformance in 2024.

Shrikant Chouhan, Head of Equity Research at Kotak Securities noted that, fundamentally, PSU banks, being relatively cheaper, are expected to perform well in the coming year.

CONCLUSION

The market hit new highs, boosted by positive indicators from both domestic and global fronts. Robust domestic industrial production and manufacturing PMI, along with the RBI’s positive remarks on India’s GDP forecast, contributed to the bullish trend. Foreign Institutional Investors (FIIs) played a key role, showing confidence as FPI inflow increased post the Fed policy decision and the drop in US bond yields.

It’s important to note that the expressed views and recommendations belong to individual analysts, experts, and broking companies. Despite outstanding returns this year, it doesn’t guarantee a continuation of the trend in the upcoming year.

That’s all for today’s post. Hope you get some valuable insights from here.

Happy reading!

Disclaimer

The blog is meant for informational purposes and serves the general analysis of the stocks. Contents provided here are based on careful research and analysis utilizing the fundamental and technical indicators over a period of time. The post does not consist any direct recommendation about Investing or trading in the securities market. Thorough research and careful consideration are necessary for individuals to fulfill their personal responsibility in making financial decisions. Seeking professional advice before making any financial decisions is always advisable.