Indian shares, bonds seen rallying in 2024 on continued foreign inflows

MUMBAI: The bull-run in Indian financial markets is likely to continue in 2024 as foreign interest remains robust, with heavy buying expected in both equity and debt markets, several analysts and industry watchers said.

India’s inclusion in the JPMorgan emerging market debt index will boost investments in government debt, while attractive valuations will keep funds flowing into the share market.

“I expect shares to see inflows of around $30 billion in 2024, with front-loading in the January-March quarter,” Andrew Holland, CEO of Avendus Capital Public Markets Alternate Strategies in Mumbai, said.

“For 2024, earnings growth would be around 15%, and the index would also grow around 15% from where it ends in December.”

Overseas investors bought Indian shares worth net $20.7 billion in 2023 until Dec. 28, the highest since 2020, while their net debt purchases stood at $8 billion, according to data from National Securities Depository.

India’s benchmark BSE Sensex rose 19% in 2023, while the wider Nifty 50 gained 20%, with both indexes hitting record highs in late December, because of upbeat economic data and companies’ performance, traders said.