Can Nifty 50 repeat the feat of 2023 in 2024? Experts warn of challenges

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performance since 2017, with the Nifty 50 and the Sensex rising by 20 per cent and 19 per cent respectively. Additionally, the midcap and smallcap indices significantly outshone the benchmarks, with the BSE Midcap index soaring by 46 per cent and the Smallcap index surging by an impressive 48 per cent.

Following the remarkable performance in 2023, market participants are stepping into 2024 with optimism, buoyed by prospects of potential rate cuts, robust economic expansion, and anticipated political stability post the Lok Sabha elections. These factors collectively bode well for the equity market's outlook.

Also Read: Outlook 2024: At 15% upside, Nifty 50 to claim 25,000 by Dec 2024? Here's why analysts are bullish on Indian markets Nevertheless, some experts caution against the likelihood of the market replicating the 2023 performance in 2024 due to factors such as a high base, elevated valuations, and the potential risk of positive factors not meeting the anticipated expectations. "The market might have already factored in most positives; therefore, the most significant risk for the market in 2024 is the possibility of these positives not materialising," said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

"Should the Fed fail to implement the anticipated rate cuts within the first six months to the expected extent, it could potentially lead to a global sense of disappointment," said Vijayakumar. Also Read: Year-Ender 2023: A look back at top six factors that disrupted Indian stock market Valuation is a key concern for the market in the short term.

Many experts and brokerage firms point out that there is very little value in the market at this juncture. "In our view, it would be best to enter