FY24 made Dalal Street investors richer by Rs 129 lakh crore

Dalal Street investors became richer by Rs 128.77 lakh crore in the financial year 2023-24, driven by robust fundamentals of the domestic economy, increased institutional inflows, and robust corporate earnings. See how the Nifty50, Sensex, Bank Nifty indices, and the various sectors in a bumper year for investors.

The Sensex surged 14,659.8 points in FY24.

FY24, the year that showered wealth upon investors! As Dalal Street exited FY24 in style on March 28, the last trading session of the financial year that began on April 1, 2023, investors emerged wealthier by Rs 1,28,77,203.8 crore as the market capitalisation of stock exchange BSE-listed firms reached almost Rs 387 lakh crore from Rs 258.2 lakh crore a year, according to provisional exchange data. Headline indices Nifty50 and Sensex staged their best post-COVID performance in a financial year following a muted 2022-23.

What drove the gains on Dalal Street? Analysts say that a slew of favourable factors such as a booming domestic economy, robust institutional fund inflows, and overall decent corporate earnings propelled the market during the year.

Here are key things to know about the bumper year for the bulls:

1. How did Sensex and Nifty fare? While the Sensex added 14,659.8 points during the financial year, the Nifty50 surged 4,967.2 points, amounting to returns of almost 25 per cent and 29 per cent respectively. The 30- and 50-scrip gauges had gained and lost 423 points and 105 points in FY23 respectively.

2. How did various sectors perform? While all of the 13 sectoral indices rose in FY24, gains were led by the Nifty Realty, Nifty PSU Bank and Nifty Auto indices which clocked rallies to the tune of 70-135 per cent.

3. How did midcap and smallcap barometers fare? Despite their recent underperformance amid valuation concerns flagged by market regulator Sebi in mid-March, the smallcap and midcap segments outperformed the headline indices with the Nifty Midcap 100 and the Nifty Smallcap 100 rising 70 per cent and 60 per cent respectively.

4. How did Indian benchmarks fare among global peers? The Sensex and Nifty indices entered the club of best performing barometers globally, second only to the Nasdaq.

5. How big was the bull run? Before FY24, the best financial year for the Nifty50 was FY21 when record foreign inflows powered a 71 per cent surge in the index from COVID-triggered lows. Until then, the biggest gain for the index was in FY10 when stocks rebounded from a drop after the 2008 global financial crisis.

6. Where did BSE mcap peak? The market value of BSE-listed firms hit an all-time high of Rs 394 lakh crore on March 2, 2024.

7. What's driving the gains on Dalal Street? A host of factors such as hopes of policy continuity after the upcoming Lok Sabha elections, fund inflows, and favourable liquidity conditions continue to support the domestic capital market, say analysts.

8. Strong fund flows: Foreign institutional investors have net purchased Indian shares to the tune of Rs 2 lakh crore ($24.46 billion) for the financial year till March 27, provisional data shows. These investors had remained net sellers over the past two financial years. FY24 also marks their second-highest net purchases on Dalal Street in a financial year after since they began lapping up Indian shares following the pandemic-caused slide in global equities in FY21.

With inputs from agencies

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