To be precise, the Indian stock market 2024 has been tough and dynamic which tests the resilience and changed the wheel of investment opportunity. Conclusion for the year requires that we look at the highlight of the year and some of the significant events that shaped the market as we move forward.
- Nifty 50 and Sensex: Record Highs and Market Movements
The Nifty 50 and the Sensex hit record high levels in 2024 with the Sensex touching the new high of 85,372.17 points in October for the first time. Following the same trend, the Nifty 50 too edged up and crossed 26,056 points, indicating the healthy investors’ wall and a buoyant economy.
This was led by sectors, including IT Sector stocks, banking stocks, and renewable energy stocks besides the renewed focus on mid-cap stocks and small-cap counters. In more bells for broad market participation, the Nifty Midcap 100 index zoomed over 25% YTD and the Small cap 100 touched a rise of about 30%.
- IPO Market Revival
2024 saw a rebound of IPO market with more than 50 firms raised over ₹1.1 lakh Cr, the highest since the IPO frenzy in 2021. Notable debuts included:
- TechFin Solutions – The IPO was the biggest of the year 2021, the company raised ₹16,000 crore.
- Green Energy Ventures – This aggressive renewable energy major saw substantial FII action and was subscribed 23 times over.
- EdTech Leaders – Having been received ₹7,500 crore the company took advantage of increased growth in the online education system.
Pristine listing day gains; a few IPOs saw a magnificent run on listing, with as many as nine companies listing at an averaged rise of 18%, thus, restore confidence among the domestic retailand institutional investors in new generation firms.
- Geopolitical and Macroeconomic Impacts
The Indian stock market navigated through multiple geopolitical challenges in 2024. The prolonged Russia-Ukraine conflict and tensions in the Middle East triggered intermittent spikes in crude oil prices, crossing $105 per barrel in Q3, which impacted India’s import bill and led to a weaker rupee, hitting a low of ₹84.2 against the dollar.
Despite these challenges, India’s GDP growth remained robust at 6.8%, supported by strong domestic consumption and government reforms. Inflation moderated to 4.6% by year-end, aided by policy interventions and declining food prices.
- Rise of Green Investments
Sustainability investment was followed by green investment as the major themes. In its production, massive money went into the ESG funds, the AUM of which expanded by 32 percent to ₹ 80,000 crore in the Indian stock market. Key contributors included:
- Solar Corp India – There is a rising awareness of clean energy technology products across the globe in 2024 to 72% of the shares.
- EV Dynamics – A 58% increase in stock price was the cause of change, as the company followed the trend of electric vehicles.
- Hydrotech – Had 44% return delivered as investors focused on clean energy projects.
Specific policies as the National Green Hydrogen Mission have strengthened the tendency toward green investments.
- Foreign Institutional Investors (FIIs) and Domestic Trends
FIIs returned to the Indian markets with a net inflow of ₹75,000 crore in 2024, reversing the outflow trend of the previous year. Key reasons included:
- Attractive valuations in the mid-cap and small-cap space.
- Robust economic growth despite global headwinds.
- Continued reforms in banking, infrastructure, and taxation policies.
On the domestic front, retail investors’ participation surged. The number of demat accounts surpassed 15 crores, an 18% increase from 2023. Systematic Investment Plan (SIP) contributions hit a record high of ₹14,000 crore in November, highlighting the growing preference for mutual funds among retail participants.
- Sectoral Performance
- Banking and Financial Services – Taking credit growth of 16% and declining NPAs into consideration, this sector emerged as one of the best performers. Adverse government policies positively affected the banks through better net interest margin and rise demand from retail customers and corporate borrowings. Leading banks such as HDFC Bank and ICICI Bank experienced more than ten percent rise in their stock prices in reaction to the move.
- Information Technology – Demand for digitization has been a major source of influence for top IT firms such as TCS and Infosys to deliver an average of 24% in terms of returns. The sector also experienced a favorable hiring trend and sustained investments in AI, business cloud and cybersecurity solutions.
- Renewable Energy – Drives rising from global oil price hikes and investment in green energy technology pushed up 34 percent stock price after being led by Reliance Industries. This focus to renewable energy projects was further improving long-term growth prospects of the sector.
- Real Estate Sector – This worsened by interest rate premium that eventually slowed down the sector ability to maintain housing consumption. Lack of liquidity some of the builders saw their performance pull down, due to creaks in their operational power. The share value of prominent real estate companies such as DLF and Godrej Properties fell dramatically and, therefore, lagged behind all-round market benchmarks.
- Pharmaceuticals Sector – Reduced by 8% because many drugs have gone off-patent and the government has restricted the prices of many drugs. Margins were under pressure for most global companies and exports were hampered by regulations in major markets such as United States.
Conclusion
And as we say goodbye to the year 2024 the stock market of India can in fact be seen as the marker for all the changes and turnovers. Year 2021 has set highs and lows that have paved the way for better year ahead, starting with 2025 with much more opportunities in the old and the newish economic fields. For investors, the mantra remains clear: get updated as much as possible, be patient, and identify with change as markets persist in their transformation.