Stock Market surges 30% in FY24- New highs, fresh records and massive gains- All details from Dalal Street this fiscal

As the financial year 2024 (FY24) draws to a close, it is time to take stock .The Indian stock market had a rather belter of a year. New highs, records, blockbuster listings- you name it and the markets delivered this financial year. 

The Nifty50 spiked up an impressive 28.6%, while the Sensex jumped 24.8% in FY24, outperforming most major market indices globally. 

Nifty: Record Run

The Nifty, representing the top 50 blue-chip companies across various sectors, hit multiple record highs throughout FY24. Notably, it surpassed the 19,000-point mark in June, and further milestones were hit with the Index breaching 20,000 and 21,000 levels in September and December respectively. 

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In January, the Index breached the remarkable 22,000 mark to record a new lifetime high of 22,525 on March 07.

Broader markets party

Additionally, sectors such as realty, Central Public Sector Enterprises (CPSE) and infrastructure have witnessed extraordinary gains, with indices surpassing 100% increase during the fiscal year.

PSUs: The Poster Boys

Public Sector Undertaking (PSU) stocks have emerged as standout performers in FY24, offering substantial returns to investors, with some stocks witnessing up to five-fold increases in value. Simultaneously, the Indian primary market has experienced a surge in activity, as companies capitalize on bullish market conditions to raise funds.

Large Cap Multibaggers

Large-cap companies have also demonstrated robust performance in FY24, with several stocks delivering multibagger returns. The Nifty 50 index, reflecting the performance of top-tier companies, has surged by 30% so far in FY24 and ended in the green for 9 out of the last 11 months.

In March- the last month of the financial year, the Nifty 50 has already shown a 1% increase this month, poised to end on a positive note. Reflecting on monthly performances, the index recorded a substantial gain of 7.94% in December, marking its best December performance in the last two decades.

In a remarkable milestone for the Indian stock market, the market capitalization of listed companies on the NSE crossed Rs 334.72 crore for the first time in December. 

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Furthermore, Foreign Portfolio Investors (FPIs) have displayed renewed confidence in Indian equities, injecting more than Rs 2 lakh crore into the market in 2023-24, driven by optimism surrounding the country’s robust economic fundamentals amidst a challenging global environment.

Experts on Indian Markets outlook in FY25

Commenting on the outlook of Indian markets in FY25 Deepak Jasani, Head of Retail Research at HDFC Securities said that key risk for the markets in FY25 could be whether a positive outcome of elections is already discounted to a large extent and the street would like to track the fresh policy measures and Union Budget by the new Govt. before getting more excited. 

“Analysts would like to get comfortable about global growth, corporate earnings growth and risk appetite to get more positive on markets. They would also like to see the two geopolitical conflicts easing out and rate cuts to start soon across the globe. US elections outcome may not have a material impact on our markets immediately,” added Jasani.

Betting on the top sectors for FY25 Nirvi Ashar, Fundamental Analyst at Religare Broking said that With the rally to continue in FY25, we would suggest investors to bet on sectors that have strong future growth potential and valuation comfort. Thus, amongst sectors, investors can bet on Private Banking, IT and FMCG while they can also look for investment in select pockets of the Auto and Cement sector. 

“In FY24, the benchmark indices had a decent run, however, we believe FY25 to be an eventful one and its returns would depend upon factors like earnings & election outcome, macro-condition, interest rate cuts and ongoing geo-political issues. Further, we anticipate that most of the above factors would be in favor of the market, aiding the rally to continue with atleast double-digit returns,”Ashar added further.

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