2022 was a stellar year for the Indian stock market as it outperformed most of its peers in the face of adversities. In fact, the benchmark indices, the BSE Sensex and the NSE Nifty 50 clocked fresh record highs in December 2022. 

Within six months after touching its 52-week low of 50,921.22 points on June 17, 2022, the Sensex jumped 13,000 points to touch its all-time high of 63,583.07 points on December 01, 2022. Similarly, the Nifty gained 3704 points from its 52-week low of 18183.40 points to reach its all-time high of 18,887.60 points. 

Indian markets have performed despite global headwinds like the Russia-Ukraine War, the pandemic-infused supply chain challenges, the staggering inflation and FIIs pressing the sell button. 

Market experts believe that the Indian markets this year will be influenced by a combination of factors like the impact of the pandemic and policy initiatives in the Union Budget, 2023 being just a year before major elections. 

Siddharth Khemka, Head of Retail Research at Motilal Oswal Financial Services Ltd, said that global factors like recession fears, geopolitical risks and rising coronavirus cases in China could keep equity markets volatile. In addition, the US Fed policy actions in 2023 along with RBI’s would hold importance where any moderation might encourage markets to pick up momentum. 

V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said that trends in the equity markets this year will continue to be guided by the movement of the rupee and the US dollar as well as Brent Crude, the international oil benchmark. He added that markets are likely to remain choppy in 2023 too. 

Sanjeev Hota, Head of Research at Sharekhan by BNP Paribas, said that the environment is not favourable for Indian equity, at least in the first half of 2023. “Expect only moderate returns from equity in 2023,” he said. 

“The multiple macro-economic headwinds of the 2022 global economic slowdown, rising inflation, liquidity tightening, geopolitical tensions and re-emergence of COVID-19 scare will continue to weigh on global equity markets,” Hota added in a report on market outlook 2023. 

Trends in the equity market next year will also continue to be guided by the movement of the Rupee and the US dollar as well as the international oil benchmark Brent crude. Markets are likely to remain choppy in 2023 too, V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said, adding that global growth is slowing down and interest rates are rising. 

On the bright side, India’s young and large working population has a higher disposable income. In fact, the number of demat accounts has increased from less than two crore

pre-covid to over 10.4 crore today! There are ample opportunities for growth and investment according to experts, especially for those thinking about long-term wealth creation. 

Written by Simran Bafna 

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