BSE Sensex scaled new peaks fetching double-digit returns. Consequently, India’s share in global market capitalization climbed to an all-time high of 3.8% in December, showed an analysis by Motilal Oswal Financial Services Ltd.
This reading has been hovering above its historical average of 2.7% in the recent past. A slew of positive domestic factors along with robust liquidity inflows by foreign and domestic investors came as a boost.
Expectations that the US Federal Reserve could begin its interest rate easing cycle in 2024 could keep sentiment in the equity market upbeat. However, on the flipside, there could be nervousness among investors in a run-up to the 2024 general elections.
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