The financial landscape of India has experienced a phenomenal transformation throughout 2024, witnessing an extraordinary elevation in investors’ fortunes by an astounding Rs 110.57 lakh crore. This monumental surge has been primarily fueled by an unprecedented rally in the stock markets, pushing the boundaries of historical benchmarks and setting new records. The accumulative market capitalisation of companies listed on the Bombay Stock Exchange (BSE) escalated to a monumental Rs 4,74,86,463.65 crore, translating into approximately USD 5.67 trillion. Such impressive figures have underscored the year’s financial narrative, with the market valuation of BSE-listed firms touching a pinnacle of Rs 477.93 lakh crore on the memorable date of September 27.
Zooming into the specifics, the BSE Sensex leaped by 12,026.03 points, an impressive increase of 16.64 percent, thereby furnishing investors with lucrative returns. The benchmark index achieved an unparalleled zenith of 85,978.25 on September 27, vaulting past numerous milestones throughout the journey. This remarkable performance was not an isolated phenomenon but was echoed by the robust domestic liquidity along with the solid fundamentals anchoring the Indian economy.
An insightful commentary was provided by Santosh Meena, the Head of Research at Swastika Investmart Ltd., who highlighted, “One of the key highlights of this year is the robust domestic liquidity, driven by record inflows into the mutual fund industry.” Meena further elucidated on how, despite the selling pressure from Foreign Institutional Investors (FIIs), the Indian equity markets soared to record highs, thereby ensuring substantial gains. “Notably, the midcap and smallcap indices outperformed and several stocks turned into multibaggers, rewarding retail investors handsomely,” added Meena, illustrating the breadth of the bullish wave across market segments.
From the onset of 2024, when the BSE Sensex was at the 72,271.94 level, the benchmark indicator has risen majestically to 84,266.29. Such an outstanding trajectory signifies a landmark year for retail investors, particularly emphasizing the stellar performance of midcaps and smallcaps, underpinned by domestic liquidity and a resilient stance amidst FII outflows. Furthermore, the BSE midcap and smallcap gauges have witnessed a surge of 12,645.24 points (34.32 percent) and 14,777.09 points (34.62 percent), respectively, evidencing the broad-based rally.
Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd., shed light on the recent momentum, attributing it to factors such as the Fed rate cut and anticipations around the Reserve Bank of India’s policy alignment. “The sharp rally in recent weeks was the outcome of the Fed rate cut and hopes that RBI would also follow suit in its policy meeting,” Tapse pointed out, connecting global financial dynamics with local market movements.
Highlighting the interplay between global events and local market sentiment, Tapse and Meena both acknowledged the impact of global markets and geopolitical tensions. A significant facet of this year’s financial landscape has been the initiation of the interest rate cut cycle in the US, uplifting investor sentiment and directing liquidity towards riskier assets. Moreover, the relatively stable crude oil prices throughout the year, despite geopolitical uncertainties, have been a boon for the Indian economy by easing inflationary pressures and bolstering market optimism.
Reflecting on the progression from 2023, when the BSE benchmark had ascended by 11,399.52 points or 18.73 percent, the trajectory of wealth accumulation on Dalal Street has been remarkable. Investors augmented their wealth by Rs 81.90 lakh crore in 2023, setting the stage for 2024’s exceptional rally. An emblematic milestone was achieved last November when the combined market valuation of all BSE-listed companies breached the USD 4 trillion mark for the first time, further affirming the market’s upward trajectory by hitting the USD 5-trillion mark on May 21 this year.
In the echelons of corporate valuation, Reliance Industries emerged as the country’s most valued firm, boasting a market valuation of Rs 19,82,265.88 crore. It was closely followed by giants such as TCS, HDFC Bank, Bharti Airtel, and ICICI Bank, delineating the diverse contributors to the market’s towering valuation.
Peering into the horizon of equity markets, Meena anticipates, “As we approach the US elections and navigate ongoing geopolitical uncertainties, the market may experience a time-wise correction and price corrections in certain segments.” However, he remains optimistic about the emergence of sector and stock-specific opportunities, underpinned by the relentless strength of domestic liquidity.
In this riveting saga of financial triumph and market milestones, the story of 2024 stands testament to the vibrant dynamics of the Indian stock market, charting a course through resilience and robust growth. As the narrative unfolds, retail investors and market aficionados alike find themselves on a thrilling odyssey, peppered with twists, turns, and the tantalizing promise of uncharted territories.
For those enraptured by the relentless pulse of the financial markets and eager to plunge deeper into the vortex of trending news, DeFi Daily News beckons, promising a treasure trove of insights and narratives awaiting exploration.
