In this article, we will discuss,Nifty 50 Index fell by 0.6% in the financial year 2023. The year was marked by several challenges which impacted the global markets such as the Russia-Ukrain war, inflation, and rising interest rates across the world. Besides, the Hindenburg report on Adani led to a massive fall in the market between the January-March 2023 period.Overall in FY 2023, the sectors that performed well were banks, FMCG, and auto while the sectors that dragged the overall Index down were metals, realty, IT, and media.Nifty PSU banks Index rose by a whopping 36% and private banks by 11% in FY2023. Bank of Baroda, IDFC First Bank, Federal Bank, Punjab National Bank, and ICICI Bank lifted the Nifty 50 Index. Since banks constitute nearly a third of the Nifty weight, their performance has a huge impact on the index's overall performance. The FMCG sector rose by 26% and auto by 16%. ITC was the best performer in the FMCG space. The stock gained a record 62% in the last year. However, the global challenges impacted the IT and metals sectors which fell by 21% and 14%, respectively. The fall in commodity prices impacted metals stocks. Nifty media and realty Index fell by 28% and 16%, respectively.Nevertheless, the Index made a strong recovery in April 2023 and gained almost 4%, the highest monthly gain in 2023. The Index continued its run in May and is now just 3% away from its lifetime high of 18, index 887 points as on 22 May. Year-to-date from April 2023 to May 2023) the index gave a 5% return. The Index benefitted from several factors such as resumed FII buying in April and early May 2023, a fall in crude oil prices, a pause in interest rate hikes by US Fed, and positive earnings results in the March 2023 quarter. The significant jump in the Index performance was driven by a strong rally in the auto, banking, and realty sectors.
Table: Sector-Wise Performance of Nifty Indices
|Indices||Current level||April to 25 May 2023|
|Nifty Fin Services||19,239||6.5%|