FY24 Market Review: Nifty 50 jumped 30%; 5 stocks including Bajaj Auto, Tata Motors delivered returns over 100%
The benchmark index, Nifty 50, which represents the country’s top 50 blue-chip companies across various sectors, has soared 30% in FY24, ending 9 out of the last 11 months in the green.
As financial year 2024 (FY24) draws to a close, the Indian stock market stands on solid ground, with a significant number of stocks achieving their all-time highs. This trend has resulted in handsome rewards for shareholders across the board.
Indian stocks remained hot picks among institutional investors due to the country's macroeconomic stability and earnings momentum.
Notably, mid-small and PSU stocks have emerged as standout performers in FY24, generating wealth for investors by up to five times. Concurrently, the Indian primary market has witnessed a surge in activity as companies seize the bullish market conditions to raise funds.
The large-cap space has also performed well in FY24, with a handful of stocks delivering multibagger returns. The benchmark index, Nifty 50, which represents the country’s top 50 blue-chip companies across various sectors, has soared 30% in FY24 so far. It ended 9 out of the last 11 months in the green.
With the index already showing a 1% increase this month, it is poised to end on a positive note. Looking at the monthly performance, the index recorded a substantial gain of 7.94% in December, marking its best December performance in the last two decades.
New milestones
Nifty 50 has notched several record highs this financial year, surpassing 19,000 in June and reaching 20,000 and 21,000 levels in September and December, respectively. Further in January, it touched the 22,000 mark. Recently, on March 07, it recorded a new lifetime high of 22,525 points.
Remarkably, in December, the market capitalisation of Indian listed companies on the NSE reached a significant milestone, crossing $4 trillion ( ₹334.72 trillion) for the first time.
This remarkable performance can be attributed to robust retail participation and strong foreign portfolio investor (FPI) inflows, along with buoyant economic growth, healthy corporate earnings, and the anticipation of continued political stability in the upcoming Lok Sabha elections.
India outlook
International brokerage houses have upheld their optimistic perspective on India, revising their GDP projections upward. Jefferies, for instance, foresees India ascending to become the world's third-largest economy by 2030, outpacing both Japan and Germany. It also projected that the market capitalisation of the Indian equity market would reach $10 trillion by 2030.
Global rating agency Moody's earlier this month raised India's growth forecast for the 2024 calendar year to 6.8% and said that the country will remain the fastest growing among G20 countries.
Also Read: India's FY25 growth outlook looks bright, core inflation on downtrend, says FinMin: 5 key highlights
Concurrently, multinational corporations are progressively relocating their manufacturing operations to India. With its vast scale and potential, India emerges as a compelling alternative to China for global businesses seeking to expand their manufacturing footprint.
Amid this backdrop, India and the European Free Trade Association (EFTA) signed a historic free trade agreement (FTA). Major economies are seeking to diversify their supply chains, reducing reliance on China and looking to India as an alternative.
5 Nifty 50 stocks delivered multibagger returns
During this bullish phase, an impressive 47 out of 50 stocks in the Nifty 50 index have surged by over 25%, with 5 of them delivering multibagger returns. Notably, three of these high-performing stocks belong to the auto sector, benefiting from strong sales and decreased raw material costs, which have bolstered their gross margins.
Bajaj Auto leads the pack in the Nifty 50 index with a remarkable return of 141% so far in FY24, closely followed by Tata Motors with a gain of 138%. Adani Ports and SEZ secured the third position with a rally of 110%, while Coal India claimed the fourth spot with a gain of 109%. Hero MotoCorp, the world's largest two-wheeler manufacturer, has seen its stock surge by 101% in FY24 so far.
Other stocks such as NTPC, Adani Enterprises, ONGC, BPCL, L&T, Cipla, Sun Pharmaceutical, M&M, Power Grid Corporation, Bharti Airtel, Tata Consumer Products, Maruti Suzuki India, IndusInd Bank, Tata Steel, HCL Technologies, Titan Company, State Bank of India, Apollo Hospitals Enterprise, Hindalco Industries, Grasim Industries, Dr. Reddy's Laboratories, Eicher Motors, Nestle India, and Reliance Industries all yielded returns between 35% and 90% in FY24 so far.
Disclaimer: We advise investors to check with certified experts before making any investment decisions.
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