Markets Outlook for FY23 | Experts see low double-digit growth; defence, EV, IT may steal focus

Markets Outlook for FY23 | Experts see low double-digit growth; defence, EV, IT may steal focus

Though FY2022 was a roller coaster year for the global equity markets, Indian stock markets were the top performers in generating returns for investors. The Nifty50 was the top-performing indices, compared to all major global markets. It generated returns of 19 percent during the financial year gone by, beating the global heavyweights like S&P 500, FTSE and Nasdaq.

The first half of FY22 witnessed strong performance from the markets but extreme volatility crept in the second half due to the US Fed’s stance towards interest rate hikes and tapering of bond purchase, the rising inflation and crude prices dented the sentiment even further while the Russia-Ukraine crisis overshadowed all other contributing factors to the increase in volatility and widespread correction in the equity markets.

Outlook for FY23

Experts unanimously agree to the fact that the volatility is likely to persist in the Indian equity markets at least in the first half of FY23 if not beyond and confirm that the underlying fundamentals of Indian markets are still intact. The rising interest rates and high inflation will be the major contributing factors to this apart from the direction in which the Ukraine crisis will unfold in the coming future.

This will likely keep