Goldman Sachs 10 key lessons learned in 2023 that could be relevant for investors during 2024. Stay overweight on India
India remains one of the best compounding markets in the region: NIFTY's 20% annual return last year ranks in the 62nd historical percentile over the past 3 decades, and is above the 14% average annual return in 2023 as per Goldman Sachs; Its 8th consecutive year of positive equity returns . Also Read- Goldman Sachs revises Nifty target to 23,500 for 2024, here's why 2. Record outperformance streak vs. MXAPJ- Record outperformance streak versus MXAPJ (MSCI Asia Pacific Ex Japan Index).it was the third successive year (only repeated once during 2005-07).
Goldman Sachs expect another year of strong returns in 2024 and stay overweight India within their regional allocations. 3. ) Intra-year realized volatility continues to trend lower, improving risk-adjusted returns- In 2023, annual realized volatility for NIFTY was 10%, which is the second lowest annual volatility in the past 3 decades.
Goldman Sachs analysts note that realized volatility has been trending down in recent years, partly because of sticky bids from retail flows, which have offset the risk-off moves during bouts of foreign selling. 4. Fastest addition of a trillion-US dollar market cap: it was the Fastest addition of a trillion-US dollar market cap.
India’s listed equity market capitalization crossed $4 trillion, accruing from $3 trillion to $4 trillion in less than 3 yrs (market cap addition from $1tn to $2tn took about 10 years and the next trillion from $2tn to $3tn accrued in about 4 years). 5. Earnings accruals drove 20% returns, even with high starting valuations: MSCI India’s 20% US dollar gain in 2023 was driven by 18% EPS change, 2% forward PE change and about 1% rupee depreciation versus dollar.
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