Goldman Sachs 10 key lessons learned in 2023 that could be relevant for investors during 2024. Stay overweight on India

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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.