The BSE Sensex has gained 12,026.03 points or 16.64% so far in 2024, giving investors a hefty return. The benchmark hit a new all-time high of 85,978.25 on September 27 of this year, breaking a number of milestones.
Analysts attribute the market’s sharp rally to the strong fundamentals of the Indian economy as well as strong domestic liquidity.
“One of the key highlights of this year has been the strong domestic liquidity driven by record inflows into the mutual fund industry,” said Santosh Meena, head of research at Swastika Investmart. Ta.
Despite selling pressure from FIIs (foreign institutional investors), the Indian stock market reached record highs and delivered solid gains, he said.
“Notably, mid-cap and small-cap indices outperformed, with several stocks turning into multibaggers, benefiting retail investors well,” Meena added. Earlier this year, the BSE Sensex was at 72,271.94 levels, while the reference gauge is currently at 84,266.29. Overall, 2024 was an outstanding year for retail investors, characterized by strong market performance, especially in mid-cap and small-cap stocks, supported by domestic liquidity and resilience in the face of FII outflows. he said.
The BSE Midcap index has soared 12,645.24 points or 34.32 per cent so far this year, while the Small Cap index has soared 14,777.09 points or 34.62 per cent.
“The sharp rally in recent weeks is a result of the Fed’s rate cuts, and we expect the RBI to follow suit in its policy meeting,” said Prashant Tapse, senior vice president (research) at Mehta Equities. said.
The 30-share BSE benchmark closed above the 83,000 level for the first time on September 17. It closed above the historic 84,000 level for the first time on September 20th. The benchmark closed above the 85,000 level on September 25th.
“Global markets are also providing support despite continued geopolitical tensions. A big positive catalyst for emerging markets like India was the start of the US interest rate cutting cycle.
“This has boosted investor sentiment and led to an influx of liquidity into riskier assets.Furthermore, despite geopolitical uncertainty, oil prices remained relatively low throughout the year and inflation Easing pressure and improving market outlook further supported the Indian economy,” Meena added.
In 2023, the BSE benchmark increased by 11,399.52 points or 18.73 percent.
Dalal Street investors added Rs 81.9 billion to their assets in 2023.
The total market capitalization of all listed companies on major stock exchange BSE reached the USD 4 trillion milestone for the first time in history on November 29 last year.
The market capitalization of BSE-listed companies reached the $5 trillion level on May 21 this year.
Reliance Industries is the most valuable company in the country with a market valuation of Rs 19,82,265.80 crore, followed by TCS (Rs 15,582,082.50 crore), HDFC Bank (Rs 13,16,818.45 crore) and Bharti Bank. Airtel (Rs 9,672,954.1 million) and ICICI Bank (Rs 8,983,022 million) were in the top five.
Regarding the future of the stock market, Meena said, “As we approach the US election and navigate ongoing geopolitical uncertainty, the market may experience temporal and price corrections in certain segments. “However, sector- and stock-specific opportunities will continue.” Emerging markets continue to emerge, driven by strong domestic liquidity. ”
