The year 2024 was full of ups and downs for the stock markets. While the Indian stock markets made records several times during the year, on the other hand it also faced big losses at times. However, despite this, the shares have given positive returns to investors during the year. According to news agency PTI, Motilal Oswal Wealth Management has said in a note that due to strong financial results of companies in the first half of the year i.e. January-June, surge in investment from domestic funds and strong macro landscape, Nifty in September, The all-time high of 26,277.35 was reached in 2024.
The note said, “In the last two months the market has come down from its record high. This was the third major correction in 2020 after the Covid-19 pandemic. The main reason for this is the massive selling by foreign institutional investors (FIIs) due to domestic and global factors.
BSE’s 30-share Sensex had reached its record level of 85,978.25 on September 27 this year. On the same day, Nifty also touched its all-time high of 26,277.35 points. The Sensex has fallen 8.46 percent from its all-time high in September. At the same time, Nifty has fallen by 9.37 percent from the record level.
Sensex rose 8.94 percent so far this year
Till December 27 this year, the 30-share BSE Sensex has risen 6,458.81 points or 8.94 percent. At the same time, Nifty of National Stock Exchange has increased by 2,082 points or 9.58 percent. This year was full of many events. Apart from the general elections in India, the presidential elections in America were the main events during the year. Apart from this, the stock markets were also affected by two major geopolitical developments – Israel-Iran conflict and Russia-Ukraine war.
m-cap of 6 out of top 10 Sensex companies increased by ₹86848 crore, HDFC Bank and RIL benefited the most
There was also a year of jump in valuation
The year 2024 saw a lot of conflict between Bulls and Bears. Global macro economic data and geopolitical tensions significantly influenced the market, due to which the market witnessed continuous fluctuations. However, despite uncertainties around the world, Indian markets have largely performed well amid the pressure and given better returns to investors.
“It was also a year of surge in valuations, which made Indian markets the most expensive in the world,” says Prashant Tapse, senior vice president, research, research analyst, Mehta Equities Ltd. Excess liquidity in the market pushed valuations to high levels, which led to a subsequent correction.
Midcap and smallcap shares shine more
2024 has been the ninth consecutive year when Indian stock markets have given positive returns to investors. During this period, shares of small and medium companies performed better than big companies. This is the reason why midcap and smallcap stocks have given higher returns to investors than largecap stocks. Santosh Meena, Head of Research, Swastika Investmart Ltd, said, “However, the performance of Nifty and Sensex has been weaker than the markets of other countries, especially the US. The reason for this poor performance is the massive selling by foreign institutional investors.
Meena said the challenges further increased in the last quarter i.e. October-December, as disappointing corporate earnings and lower than expected economic growth further reduced investor confidence. The market slumped since October amid concerns of foreign investors fleeing the domestic market and rising valuations.
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Sensex fell 5.82 percent in October
In October alone, the Sensex was down 4,910.72 points or 5.82 per cent. In the same month, Nifty had fallen by 1,605.5 points or 6.22 percent. The Sensex is down 1,103.72 points or 1.38 percent so far in December. In October, FIIs had withdrawn a record Rs 94,017 crore from Indian markets.