IT & Financial Services: The largest contributor to the S&P 500’s rise

Global Market Snapshot Nov 2023 by Motilal Oswal Asset Management Company

FinTech BizNews Service

Mumbai, December 6, 2023:

Indian Market Update

Nifty Smallcap 250 rose by 10.22% in November 2023

• Nifty 50 rose by 5.52%
• Nifty Next 50 rose by 9.09%
• Nifty Midcap 150 rose by 9.59%
• Nifty Microcap 150 rose by 10.64%
• Nifty 500 rose by 7.06%

Quick Take

• According to Motilal Oswal Asset Management Company’s Global Market snapshot report, in November 2023, the Indian stock markets experienced a notable upturn, as evidenced by a 6% surge in the Nifty 50 index. While the Smallcap 250 index outperformed, leading the gains with an impressive growth of 10%. Nifty Smallcap 250 rose by 10.22% in November 2023 and 11.07%, 33.68%, and 37.31%, in the last 3 Months, 6 Months, and 1 year, respectively.
• Across the board, all sector indices closed the month on a positive note. The realty sector emerged as the top performer, witnessing a substantial increase of 18%.
• Following a month of negative returns in factor-based indices, November marked a remarkable turnaround, with all factor-based indices experiencing notable increases.

Momentum emerged as the frontrunner, registering the highest rise at 12% during the month.

• The Financial Services sector continued to play a pivotal role in propelling the Nifty 500 index,

contributing significantly to its overall 7.1% increase in November 2023.

Global Market Update

• In the US, S&P 500 and NASDAQ 100 both experienced a 9% & 11% gains in November 2023, with the IT & Financial Services sector being the largest contributor to the S&P 500’s rise.
• Globally, both emerging and developed markets saw positive performance, rising by 9% and 8%, respectively. South Korea witnessed the most significant rise 16% followed closely by Germany & Taiwan rising by 13%
• Crude oil prices nosedived by 6% during November, due to rising geo-political risks, low demand from the US and mixed Chinese data.
• On the commodities front, precious metals were in the green with gold and silver prices rising by 2% and 8% respectively, amid rising tensions in the middle east. Cryptocurrencies like Bitcoin and Ethereum went soaring at 9% and 13%, respectively.

Economic Indicators

GST revenue collection rises 15% in November 2023. According to the Ministry of Finance, this is the highest YoY growth in monthly GST collections. It amounts to Rs.1.68 lakh crore

• India's Gross Domestic Product (GDP) growth rate came in at 7.6 percent for July-September, beating all estimates, data released by the Ministry of Statistics
• At the recent FOMC meeting, the Federal Reserve maintained interest rates at 5.50%, showing confidence in the US economy despite high inflation.
• Boosted by expectations of another rate hike, November saw US 10-year Treasury yields rise by 7 bps to 4.36% after having fallen below 4.3% for the first time since September

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