Despite the huge volatility and corrections in the market in 2024, the benchmark indices – Nifty 50 and Sensex, have posted 8% gains. They have continued their last 8-year positive returns trend. Sensex gained 8.2% while Nifty 50 gained 8.8% due to higher domestic liquidity. On September 26, 2024, the indices reached an all-time high and then fell 10% due to the continued selling by the FPIs and the poor second-quarter results of the companies.
In this blog, we’ll get into the details of the performance of stock market indices, sectors, gold, and crude oil in 2024.
India and Global Indices Performance
India’s broad market indices have underperformed the major economies such as the US, Japan, Singapore, China, etc. At the same time, India has outperformed the UK, France, South Korea, and Indonesia indices in 2024. On December 31, 2024, the Sensex closed at 0.14% lower because of the global uncertainties and higher US treasury yields.
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| Indices | Country | 1-Year Return |
|---|---|---|
| Nasdaq | US | 30% |
| S&P 500 | US | 24% |
| Nikkei 225 | Japan | 19.8% |
| Hang Seng | Hong Kong | 19.5% |
| DAX | Germany | 18.7% |
| Straits Times | Singapore | 17.3% |
| Shanghai Composite | China | 13.1% |
| Nifty 50 | India | 8.8% |
| Sensex | India | 8.2% |
| FTSE | UK | 5.7% |
| CAC | France | 2.5% |
| Kospi | South Korea | -10.3% |
| Jakarta Composite | Indonesia | -3.3% |
*As on December 31, 2024
Sectoral Indices Performance
Both Nifty Smallcap 100 and Nifty Midcap 100 indices have gained 20% each. Also, Nifty Healthcare and Nifty Pharma indices have gained around 40%. Due to the market highs till September 2024, there is a FOMO (fear of missing out) among the investors. After the downfall, the investors have been happy with JOMO (joy of missing out) in the last three months.
Among the Nifty gains, BEL led the race followed by ONGC, Kotak Mahindra Bank, Trent, and Coal India.
| Sectoral Indices | 1-Year Return |
|---|---|
| Nifty Healthcare | 40% |
| Nifty Pharma | 38.1% |
| Nifty Realty | 34.7% |
| Nifty Consumer | 33.7% |
| Nifty IT | 23.8% |
| Nifty Auto | 22.3% |
| Nifty PSE | 19.9% |
| Nifty Infra | 15.4% |
| Nifty PSU Bank | 13.7% |
| Nifty Oil & Gas | 12% |
*As on December 30, 2024
1. Real Estate
After Covid, the real estate sector has significantly boomed with the rise in sales and new project launches. It leads to an increase in property value across all seven major metro cities. Between 2022 and 2024, home sales increased by 49% with a high demand from NCR, Bengaluru, and Hyderabad.
Top real estate stocks such as Sobha, Oberoi Realty, and Godrej Properties have delivered a 1-year return of 63%, 59%, and 38%, respectively in 2024. A likely interest rate cut in 2025 can propel the size of the growing real estate sector with access to lower interest rate loans.
2. Automobiles
Automobile sectors witnessed the heat of high inflation, high interest rates, and tighter credit scenarios. The two-wheeler demand was good and first-time buyers went with the used car market due to the high prices. Also, the shares of Mahindra and Mahindra rose by 74% in 2024.
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3. Hospitality
Hospitality is driven by premiumization with the Indians ready to pay a higher price for better experiences. Investors are betting on the premium hotel companies with a rise in tourism and luxury spending. Shares of top companies such as Indian Hotels Company and EIH rose by 99% and 67%, respectively.
How Other Assets Have Performed in 2024?
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Gold
Gold generated an exceptional return of 28.9% in rupee terms in 2024. With the rising inflation and geopolitical pressures, investors bet more on this safe-haven asset. At the start of 2024, gold prices were at $2,044 per ounce and it closed at $2,624 per ounce on the last day of the year.
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Bonds
Bond yields were volatile due to fluctuations in the Indian economy and global level. In the US, the rate cut of 25 bps led to a drop in the 10-year treasury yield to 3.6% and then it recovered to 4.65% by the end of the year. In India, bond yields were mostly stable with minor corrections from 7.18% to 6.9% on the year-end day.
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Crude Oil
Crude oil prices were mainly around $70 per barrel led by the poor demand growth in China and uncertain geopolitical scenarios. The US held the leading position in crude oil production with a market share of 22%. Amidst the risk of supply disruption, crude oil prices still remained stable in 2024.
Conclusion
The expectation of a rate cut by the RBI can lead to the credit growth of banks. Higher capital expenditure allocations in the upcoming Union Budget can boost urban consumption and push sectors such as infrastructure, defense, and railways. The rate cut decisions by the US Federal Reserve and clarity on the US trade policies will decide the market direction in 2025.
Also, corporate earnings are expected to recover in the second half of FY25 due to a pick-up of rural spending and higher government spending. In the short run, weighing more on the large-cap stocks seems better while cautiously selecting the mid-cap and small-cap stocks for a diversified portfolio.
The top-performing stocks of 2024 were Dixon Technologies, Amber Enterprises, and REC. The underperformers are Rajesh Exports, Dish TV, and Zee Entertainment Enterprises. So, open Demat Account with SMC Global Securities and kickstart your investment journey with research-backed top 10 stocks for 2025.
References:
https://www.thehindubusinessline.com/markets/sensex-and-nifty-log-ninth-consecutive-year-of-gains-up-8-in-2024/article69047435.ece
Author: All Content is verified by SMC Global Securities.
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