Nifty Next 50 rose 11.09% in Dec 2023, energy emerges as top performer

In December 2023, the Indian stock markets experienced a notable upturn, as seen by a 7.94 per cent surge in the Nifty 50 index. While all the major indexes gave positive returns in December 2023, The Nifty Next 50 index outperformed, leading the gains with a growth of 11.09 per cent, according to data analysed by Motilal Oswal. 

The Nifty Next 50 Index represents 50 companies from Nifty 100 after excluding the Nifty 50 companies. The Nifty Next 50 Index represents about 10% of the free float market capitalization of the stocks listed on NSE as on September 29, 2023.

Nifty Smallcap 250 and Nifty Midcap 150 rose by 5.96 per cent and 6.98 per cent respectively, continuing their positive momentum.

Across the board, all sector indices closed the month on a positive note. The energy sector emerged as the top performer, witnessing a substantial increase of 14 per cent.

The Financial services sector continued to play a pivotal role in propelling the Nifty 500 index, contributing 2.1 per cent to the overall 8 per cent increase in Nifty 500 during December 2023.

In the US, S&P 500 and NASDAQ 100 both experienced four and five per cent gains in December 2023 respectively, with the Information Technology sector being the largest contributor to the S&P 500’s rise. Globally, both emerging and developed markets saw positive performance, except China, which showed a negative 2.5 per cent. Brazil, South Africa and Korea, witnessed an increase of 6 per cent in December 2023.

Crude oil prices nosedived 6 per cent during December due to rising geo-political risks, low demand from the US and mixed Chinese data. On the commodities front, gold prices witnessed a rise of ~2% and silver saw a decline of 5%, amid rising tensions in the Middle East. Cryptocurrencies like Bitcoin and Ethereum soared at 12% and 11%, respectively.