Rama Krishna Sangem
Of course, Dalal Street had a roller coaster ride in 2024 from shattering record after record to facing heavy correction off-late but equity markets still rewarded investors with positive returns, driven by a surge in domestic fund flows and a resilient macro landscape.
The first half of the year saw robust corporate earnings, a surge in domestic flows, and a resilient macro landscape, driving the Nifty to an all-time high of 26,277.35 in September 2024, according to Motilal Oswal Wealth Management.
“In the last two months, the market has corrected from its all-time high. This correction marked the third major decline since the COVID-19 pandemic in 2020, with unprecedented selling by Foreign Institutional Investors (FIIs) due to a combination of domestic and global factors,” it said in a note.
As of December 27, the BSE benchmark Sensex has gained 6,458.81 points or 8.94 per cent while the NSE Nifty climbed 2,082 points or 9.58 per cent. The year was marked by significant events, with the Indian general elections and the US Presidential polls taking centre stage.
Equity markets also grappled with two major geopolitical turmoil — the Israel-Iran conflict and the ongoing Russia-Ukraine war.
“2024, was a year of tug of war between the bulls & bears marked by volatility majorly driven by global microeconomic data points followed by geopolitical tensions impacting markets. Despite all the uncertainties around the world, Indian markets sustained the pressure and delivered very decent returns.
Surge in valuation
It was also a year of surge in valuation to the peak making Indian markets the most expensive in the world. While the excess liquidity in the market pushed valuations as high as possible surpassing fundamentals theories which eventually invited corrections in the markets from the top,” Prashanth Tapse, Senior VP Research, Research Analyst, Mehta Equities Ltd, said.
The BSE benchmark Sensex hit its record peak of 85,978.25 on September 27 this year, and the NSE Nifty also reached the lifetime high of 26,277.35 on the same day.
“2024 marked the ninth consecutive year of gains for the Indian equity market. Despite a challenging final quarter, the market delivered strong returns for the year, with midcap and smallcap stocks outperforming and rewarding investors handsomely.
Is this an indicator to the trends in the Happy New Year of 2025? Need to wait for a few more weeks.
