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Indian vs US Stock Market Performance: A Comparative Analysis of Q1CY24

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By SK_INSIGHTMEDIA

Indian
Indian vs US Stock Market Performance: A Comparative Analysis of Q1CY24 4

Indian stock market (Dalal Street) against the US stock market (Wall Street) in Q1CY24. Discover how indices like Nifty 50 and S&P 500 fared, along with insights into sectoral performances and economic triggers influencing market dynamics.

Introduction

In the fast-paced world of finance, keeping an eye on stock market performance is essential for investors, traders, and analysts alike. The first quarter of Calendar Year 2024 (Q1CY24) witnessed intriguing movements in both the Indian and US stock markets. While Dalal Street saw remarkable rallies in small-cap and mid-cap indices, Wall Street showcased its prowess. Let’s delve deeper into how the Indian stock market performed against its US counterpart in Q1CY24.

Indian Stock Market vs US Stock Market: A Tale of Indices

The Indian stock market, represented by indices such as the Nifty 50, BSE Sensex, and Bank Nifty, displayed mixed performances in Q1CY24. The Nifty 50 index surged by 6.40 percent year-to-date (YTD), while the BSE Sensex recorded a 2.73 percent increase in 2024. However, the Bank Nifty index saw a more modest growth of around 0.54 percent. In contrast, the US stock market’s major indices, including the S&P 500, Nasdaq, and Dow Jones, outperformed their Indian counterparts. The S&P 500 registered a significant 9.73 percent rise YTD, with the Nasdaq index logging over a 10 percent increase in 2024. Even the Dow Jones index surged by 3.15 percent in the current year, showcasing the robustness of the US market.

How Dalal Street Fared in Q1CY24

Despite the mixed performance of frontline indices, certain segments of the Indian stock market exhibited noteworthy growth. The small-cap and mid-cap indices on Dalal Street particularly stood out during Q1CY24. The Nifty Next 50 index, for instance, skyrocketed by 17.50 percent in CY24, maintaining its streak as the top performer. Additionally, the Nifty Small-cap 250 and Nifty Micro-cap 250 indices showcased remarkable growth of over 85 percent and 63 percent, respectively, over the past year. However, these indices witnessed zero returns in March 2024, signaling potential shifts in market sentiment.

Key Insights from Market Reports

According to Motilal Oswal Asset Management Company’s Global Market snapshot report, various sectors in the Indian market experienced contrasting fortunes. The auto sector emerged as the top performer, surging by 4.9 percent, while the IT index saw a decline of 7.5 percent, making it the worst performer. Additionally, the realty sector soared with a remarkable 132.5 percent return in FY24, securing its position as the top-performing sector of the year.

Global Markets Update: A Comparative Outlook

The Motilal Oswal AMC report also provided insights into global market trends. In the US, both the S&P 500 and Nasdaq 100 experienced gains in March 2024, with all sectors contributing positively to the S&P 500’s rise. Moreover, emerging markets like Taiwan achieved significant growth, while developed markets like Germany and the UK also performed well.

Triggers for the Indian Stock Market

Sandeep Pandey, Founder of Basav Capital, shed light on the factors driving the Indian stock market’s performance. He highlighted record GST collections and the Reserve Bank of India’s (RBI) optimistic forecasts for the Indian economy as key drivers. Additionally, expectations of strong Q4 2024 results from Indian companies, particularly in sectors like banking, finance, auto, infrastructure, and manufacturing, fueled market optimism.

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Conclusion:

As we navigate through the complexities of global finance, analyzing the performance of Indian and US stock markets provides valuable insights for investors and stakeholders. While Dalal Street witnessed notable growth in small-cap and mid-cap indices, Wall Street maintained its dominance with impressive gains in major indices. Understanding the nuances of these markets and the factors influencing their performance is crucial for making informed investment decisions in an increasingly interconnected world.

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