In the financial year 2024, the Indian stock market witnessed remarkable performance, with one-fifth of stocks in the S&P BSE 500 index doubling in value. The surge in equities was primarily attributed to the substantial liquidity flows into the market, propelling the S&P BSE 500 index to a 39 per cent increase thus far in FY24. Additionally, the S&P BSE Sensex and Nifty 50 index also experienced significant rallies of 25 per cent and 29 per cent, respectively.
Foreign portfolio investors and domestic mutual funds played a substantial role in the market rally, collectively injecting a net inflow of Rs 3.87 trillion into equities in FY24. This influx of funds contributed to the impressive performance of various stocks, with Indian Railway Finance Corporation, Suzlon Energy, HUDCO, MRPL, Jupiter Wagons, and Kalyan Jewellers among the top gainers, showcasing gains ranging from 300 per cent to as high as 439 per cent in FY24. Sector-wise, state-owned banks, power sector, capital goods, NBFCs, pharmaceuticals, information technology, defense, auto, realty, infrastructure, refineries, and steel sectors all experienced significant boosts in certain stocks.
According to Jefferies, a global brokerage firm, India has been on a consistent growth trajectory and is now the 5th largest equity market in terms of market capitalization, with projections indicating it could reach $10 trillion by 2030. The firm also highlighted expectations for India's GDP to reach $5 trillion in the next four years, positioning it as the 3rd largest economy, driven by ongoing reforms and sustained long-term GDP growth of around 7 per cent. Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, emphasized the importance of high-quality stocks with promising growth prospects as the market continues to attract investments. Additionally, he noted the potential for further upside in the PSU Bank Index due to favorable valuations in the segment.