The Indian equity benchmarks, BSE Sensex and NSE Nifty 50, concluded the final trading session of 2024 near the flatline, following a day of recovery from intra-day lows. Losses in IT and select banking stocks weighed heavily, though gains in other sectors offered some relief.
The Sensex dipped to a low of 77,561 early in the session, reflecting global market weakness, but later rebounded to a high of 78,248. It ultimately closed at 78,139, down by 0.14 percent or 109 points. Similarly, the Nifty 50 recovered from a low of 23,460, peaked at 23,690, and ended at 23,644.80, virtually unchanged.
On the National Stock Exchange (NSE), Bharat Electronics Limited, ONGC, Kotak Bank, Trent, and Coal India emerged as top gainers. On the other hand, Adani Enterprises, Tech Mahindra, TCS, Infosys, and SBI Life ended as the primary losers. Sector-wise, IT stocks dragged the indices down, while Healthcare and PSU Bank stocks provided critical support.
As the year came to a close, experts offered a cautious outlook for 2025. VLA Ambala, Co-Founder of Stock Market Today, noted that profit booking in high-performing stocks could dominate the upcoming sessions. “Macro factors like inflation, a weakening rupee, and high unemployment are likely to challenge market stability,” she remarked, adding that these challenges could lead to more youth exploring the stock market as a source of income.
Foreign Direct Investment (FDI) played a pivotal role in shaping India’s market in 2024. However, Foreign Institutional Investors (FIIs) emerged as net sellers, recording outflows of nearly ₹25,000 crores, counteracted by Domestic Institutional Investors’ (DIIs) net purchases exceeding ₹5.5 lakh crores. Ambala pointed out that market performance in early 2025 would likely test investors’ patience, particularly after two consecutive bullish years.
The final month of 2024 was lackluster for most emerging markets, including India. A sustained three-month downward trend reflected broader global challenges. Moving forward, analysts emphasized that Q3 corporate earnings and potential policy shifts under U.S. President-elect Donald Trump, set to take office in January, would influence market trajectories.
Despite recent challenges, Indian markets ended the year on a high note, marking their ninth consecutive year of growth. The Sensex climbed 8.2 percent or 8,809 points throughout the year, reaching a peak of 85,978. Similarly, the Nifty posted an 8.8 percent annual gain, marking a cumulative rise of nearly 200 percent over nine years.
The Indian rupee, however, closed the year at a record low of ₹85.61 against the U.S. dollar, slipping 0.1 percent on the last trading day and 2.8 percent across the year.
Commodities delivered standout performances, with gold prices soaring by 26 percent in 2024 due to geopolitical tensions and central bank acquisitions. Silver outperformed gold, registering a 42 percent annual increase. Analysts anticipate gold prices to touch ₹82,000 in early 2025.
Oil prices also edged up, with Brent crude and WTI recording a 0.8 percent rise on the final day. However, both benchmarks faced their second consecutive annual decline.
Sector performance remained varied. The Nifty IT index fell 1.5 percent, while Oil & Gas, PSU Bank, Pharma, and Metal indices posted gains. Market volatility, as measured by the India VIX, rose by 3.5 percent to 14.47.
In the primary market, Unimech Aerospace and Manufacturing made an impressive debut, listing at ₹1,491—a premium of 89.9 percent over its issue price of ₹785.
As the markets transition into 2025, the focus remains on navigating economic challenges and global uncertainties to sustain growth in the long term.
– ANI