Indian stock market vs US stock market: A Tale of Two Markets
In the world of stock markets, the battle between the Indian stock market and the US stock market is always a topic of interest. In the first quarter of 2024, the small-cap and mid-cap indices on Dalal Street in India have shown impressive growth, outperforming their counterparts on Wall Street in the US.
The Nifty 500 index in India has seen a rise of 6.40 percent year-to-date, with the Nifty Next 50 index skyrocketing by 17.50 percent in the current year. The Nifty Small-cap 250 and Nifty Micro-cap 250 indices have also shown significant growth, with increases of over 85 percent and 63 percent respectively over the past year.
However, when comparing the frontline indices of the Indian stock market to major indices in the US, the US market has taken the lead in 2024. The S&P 500 index in the US registered a 9.73 percent rise year-to-date, with the Nasdaq index logging over a 10 percent increase and the Dow Jones index surging by 3.15 percent in the current year.
Despite the strong performance of the Indian small-cap and mid-cap indices, the US stock market has outperformed key benchmark indices in India in 2024. The Motilal Oswal Asset Management Company’s Global Market snapshot report highlights the performance of the Nifty Next 50 index as the top performer, with consecutive growth over the last three months, six months, and one year.
The report also points out the performance of different sectors in the Indian stock market, with the auto sector leading as the top performer and the IT sector seeing a decline. The realty sector has soared with a remarkable 132.5 percent return, making it the top-performing sector of the year.
In the global markets, the US market has seen positive gains, with all sectors contributing to the rise in the S&P 500 index. Taiwan led the emerging markets with a 6.6 percent growth, while Germany and the UK emerged as the top performers among developed markets.
Overall, the Indian stock market has shown strong growth in the small-cap and mid-cap indices, but the US stock market has outperformed in terms of key benchmark indices. The performance of different sectors and global market trends will continue to shape the future of both markets in the coming months.
