Indian Stock Markets Poised for Positive Returns for the Ninth Successive Year, Surpassing US Performance
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New Delhi, Dec 25 (NationPress) Fueled by solid fundamentals and vigorous economic expansion, the domestic benchmark indices are projected to yield positive returns in 2024 for the ninth successive year.
According to a report by Standard Chartered Bank, 2024 will present two distinct halves for Indian equities and bonds. The first half is expected to demonstrate strong growth, bolstered by robust economic activity and corporate earnings, while the second half may experience volatility amid consolidation.
“2024 will feature a division with H1 displaying excellent performance of Indian equities and bonds, thanks to strong economic growth and solid corporate earnings. However, H2 is likely to see increased volatility,” the report states.
Notably, the Nifty 50 index has appreciated by 9.21 percent, while the Sensex index has increased by 8.62 percent.
A separate report from Motilal Oswal indicates that Indian equities have surpassed US markets over the last 35 years, with investments in Indian equity markets appreciating nearly 95 times since 1990.
If an individual had invested Rs 100 in Indian stock markets in 1990, it would have escalated to Rs 9,500 by November 2024. In contrast, Rs 100 invested in US stock markets during the same duration would have grown to Rs 8,400, as per the report.
Additionally, gold has yielded a return of 32 times during this timeframe.
Another report by Motilal Oswal Wealth Management states that following a subdued earnings performance in the first half of FY25, a recovery in earnings is anticipated in H2, driven by heightened rural spending, a flourishing wedding season, and increased government expenditure.
“We further forecast earnings to gain momentum, achieving a 16 percent CAGR over FY25-27E. Furthermore, the recent market correction and the easing of valuations present a chance to explore selective bottom-up stock ideas,” it stated.
“We remain optimistic about the long-term trajectory, considering the strength of corporate India’s balance sheets and the outlook for robust, profitable growth,” the report concluded.
