Domestic Stock Markets Set to Conclude 2024 Positively as Nifty Records 13% Gain
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New Delhi, Dec 21 (NationPress) Benefiting from robust economic growth, the domestic stock markets are poised to finish 2024 on a positive note, with Nifty achieving a 13% gain (year-to-date) – signifying its ninth consecutive year of positive performance, as reported by Motilal Oswal Wealth Management on Saturday.
The initial half of the year showcased solid corporate earnings, an influx of domestic investments, and a resilient macroeconomic environment, propelling the Nifty to an all-time high of 26,277 in September.
Moreover, the markets successfully maneuvered through significant events, including various global geopolitical challenges, the General Elections, and the Budget in India; any downturns were promptly countered with vigorous buying activity, the report indicated.
“The year 2025 might unfold as a narrative of two halves. The first half could witness continued market consolidation, while a rebound may occur in the latter half,” it further stated.
In the past two months, the market has retraced 11% from its peak, influenced by selling activities from foreign institutional investors (FIIs) due to a mix of domestic and international factors.
Looking ahead, the Indian markets are anticipated to be significantly affected by a blend of global and domestic economic developments.
The expected rate reduction by the RBI in February, coupled with the ongoing trend of US rate cuts and the anticipated changes in trade policies following Donald Trump's inauguration as US President in January, will add to market volatility.
“Furthermore, the Union Budget in February is likely to provide crucial signals to the market. Given a fragile global economic backdrop and mixed macroeconomic factors domestically, the market is expected to remain in a consolidation phase in the short term,” the report concluded.
Earnings are projected to rebound in H2 FY25, driven by heightened rural spending, a vibrant wedding season, and increased government expenditures.
“We also foresee earnings gaining momentum, yielding a 16% CAGR over FY25-27E. We maintain an optimistic outlook for the long term, supported by the resilience of corporate India’s balance sheets and the potential for substantial, profitable growth,” the report highlighted.
