2024: Year Of The Markets As Investors Got Richer By Rs 77.66 Lakh Crore

Indian stock market investors witnessed a remarkable year in 2024, gaining Rs 77.66 lakh crore in market capitalisation, led by an overall positive trend in equities. The BSE Sensex surged over 8 per cent, reflecting the resilience of the domestic markets despite global uncertainties and market volatility.  

The 30-share Sensex rose by 5,898.75 points or 8.16 per cent, closing the year at 78,867.53, with an all-time high of 85,978.25 recorded on 27 September. Similarly, the Nifty marked its ninth consecutive year of positive returns, peaking at 26,277.35 in September before a moderate correction. The market capitalisation of BSE-listed firms soared by Rs 77.66 lakh crore to Rs 4,41,95,106.44 crore ($5.16 trillion). For the first time, the market cap crossed the Rs 400-lakh crore milestone on 8 April, having surpassed Rs 300-lakh crore just last year.  

“The year was challenging yet rewarding for the markets,” said Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd. “The Nifty’s steady climb from January to September highlighted the market’s strength, despite headwinds such as foreign fund outflows and volatility.”  

Early Year Market Rally

Early in the year, a mix of anticipated inflation moderation, expected interest rate cuts, and optimism around the BJP’s re-election catalysed a rally, pushing indices to historic highs. However, the election results, though favourable for the BJP, lacked a decisive landslide, leading to brief market corrections.  

In August, a global unwinding of the Yen carry trade – where investors borrow in low-yielding currencies like the Yen to invest in higher-yielding assets – induced fresh volatility. The Indian markets, however, recovered swiftly, reaching new peaks in September.  

Market Remains Volatile As Year Ends

October brought heightened turbulence, with the Sensex plunging 4,910.72 points or 5.82 per cent, amidst record foreign fund outflows of Rs 94,017 crore. The massive sell-off was attributed to a combination of stretched valuations, muted corporate earnings, and reallocations to China. “FIIs engaged in profit-booking, but DIIs consistently supported the market,” noted Palka Arora Chopra, Director at Master Capital Services Ltd.  

Global factors also played a role in the market's dynamics. Rising inflationary pressures, uncertainties following the US presidential election, and the Federal Reserve’s cautious stance on rate cuts contributed to a sharp correction in the Nifty towards the year’s end.

Retail Investors Stay Strong 

Despite these challenges, retail investors played a major role in driving market momentum, supported by the enthusiasm around IPOs and robust mainboard listings. Reliance Industries retained its position as India’s most valued company, with a market valuation of Rs 16,44,792.26 crore, followed by Tata Consultancy Services, HDFC Bank, ICICI Bank, and Bharti Airtel.  

“The euphoria in equities was short-lived,” said Amnish Aggarwal, Director - Research, Institutional Equities at PL Capital. “The market faced a confluence of challenges, but its resilience was noteworthy.”  

The Sensex delivered positive returns in eight out of twelve months in 2024, further strengthening India’s standing as an attractive investment destination. While October and December recorded significant declines, the year overall showed the strength of Indian equities amid global headwinds.

(With PTI Inputs)