Indian stock markets have given higher returns than Gold and FDs in FY24

Mumbai: Indian stock markets have generated an impressive performance during the FY 2023-24. The Nifty 50 index delivered a substantial return of 29 percent in FY 24.

According to the data shared by the National Stock Exchange (NSE), the growth of the Indian markets has marked the eighth consecutive year of positive returns. Notably, the last instance of negative returns in the Indian market dates back to 2015, highlighting the consistent upward trajectory of Indian equities.

While the FDs (Fixed Deposits) have given a return of around 7 per cent in the last year and Gold returns have also surged to 17 per cent in FY24.

Comparing the performance of the Indian stock market with its American and European counterparts reveals India's strong position in terms of returns. While the Nifty 50 provided a return of 29 percent, the S&P 500 index of America offered a slightly lower return of 27.9 percent. Similarly, the Euro Stoxx 50 index of Europe yielded a return of 17.8 percent only.

"Indian markets have benefited from a convergence of a strong macro, positive governmental policies to enhance the infrastructure and manufacturing base of the country, strong domestic institutional and household flows into the markets, and a robust IPO market. We see all of these trends continuing and creating a very long runway of outperformance for the Indian markets" said Ajay Bagga, Banking and Market expert.

The returns in the last year indicate that the Indian market has outperformed both the American and European markets in the fiscal year, underscoring its attractiveness as an investment destination.

The experts have highlighted that the performance of the Indian market can be attributed to various factors, including favorable economic conditions, regulatory reforms, and growing investor confidence.

Additionally, as per the data by NSE the influx of 1.8 crore new investors during FY24 reflects the increasing interest in Indian equities among both retail and institutional investors. The surge in investor participation is the second-highest recorded in a single year, indicating a broad-based bullish sentiment in the Indian market.

"Strong performance of Indian equities is primarily driven by robust economic growth and strong corporate earnings trajectory despite challenging global macro environment. India continues to be an 'Oasis in the desert' and is attracting consistent flows" Harsha Upadhyaya, CIO-Equity, Kotak Mahindra AMC.

In the Indian markets, beyond the Nifty 50 index, the performance of the Nifty Next 50 index was particularly noteworthy, with a growth rate of 60 percent during the same period.

With consistent positive returns and a growing investor base, India remains an attractive destination for domestic and international investors seeking opportunities for wealth creation and capital appreciation.

As investors navigate global uncertainties, India stands out as a beacon of stability and growth in the world of finance and investments.