The country's capital markets are set to embrace Amrit Kaal and may exit financial year 2024 with a GDP of $3.6 trillion, according to Motilal Oswal's India strategy report.
As per the report, India is having a "mini-Goldilocks moment" thanks to a strong macroeconomic setup, moderate inflation, good corporate earnings, and peaking of interest rates. Goldilocks moment refers to a situation where a person or entity finds something to be in a state of optimal balance.
There has been a steady increase in the number of Demat accounts as well—from 36 million in March 2019 to 151 million in March 2024.
The report observed that the growth in FY2024 was broad-based with all indices and sectors delivering good returns. Both Nifty Midcap 100 and Nifty Smallcap 100 outperformed the Nifty-50.
"India now boasts a unique combination of size and growth" the report pointed out. According to Motilal Oswal, "financialisation of savings, private capex revival, rising discretionary consumption, a strengthening real estate cycle, and the massive development of digital and physical infrastructure" are set to play a major role in the medium-term growth story.
The report said Auto and BFSI are expected to register 20 per cent and 15 per cent YoY growth. Healthcare (33 per cent), Cement (32 per cent), Consumers (7 per cent), Capital Goods (5 per cent), and Technology (4 per cent) are also expected to see major growth.
