In a remarkable year for Indian equity markets, the Nifty 50 and Sensex indices have reached unprecedented heights during Samvat 2080. Against the backdrop of significant global events, these benchmark indices have emerged as some of the best-performing equity markets worldwide. The Nifty 50 and Sensex achieved milestone levels of 26,000 and 85,000, respectively, amid crucial occurrences such as the interim and final Union Budgets for FY24-25, India's general elections, inflationary pressures in developed nations, and rising geopolitical tensions.
From Diwali 2023 to October 17, 2024, the Nifty 50 and Sensex delivered impressive returns of 27% and 25%, respectively. The broader market indices, including the BSE 500, BSE Midcap, and BSE Small Cap, significantly outperformed the benchmarks, recording gains of 35%, 47%, and 47%. This broad-based rally saw sectors such as Railways, Defence, Public Sector Units, Power, Metals, Capital Goods, Realty, and Oil & Gas delivering extraordinary returns.
Related News |
How Market Will Perform Next Week? Analyst Predictions And Influencing Factors
Despite various hurdles, the domestic equity markets demonstrated amazing resilience this year. Key challenges included the creation of a coalition government beginning in June 2024, an increase in capital gains tax rates, growing geopolitical tensions affecting commodity prices, and a shifting inflationary environment affected by central banks around the world.
Domestic inflows into equity markets have been a major contributor to this upswing. In September 2024, mutual fund Systematic Investment Plan (SIP) inflows hit a record ₹24,509 crore, up 52.8% year on year. Mutual fund net equity inflows increased by 165.6% year on year, reaching ₹3.1 trillion between November 2023 and September 2024. Domestic institutional investors (DIIs) invested ₹4.4 trillion during this time, resulting in a record high of 17.5 crore demat accounts.
In the agricultural sector, the 2024 monsoon season brought 8% above-average rainfall, positively impacting reservoir levels across the country. With 87% of the total live storage capacity filled, this year's water storage is 120% of last year’s levels, which is expected to benefit Rabi crops and help control food inflation.
Related News |
Mutual Fund AUM In India Breach Rs 50 Trillion Mark, Courtesy Of Small-Cap Sparkle
According to the SBI Securities report, as Indian equity markets continue to grow, companies like Coal India(Target Price: Rs 593), Macrotech Developers (Target Price: Rs 1,398), Bharti Hexacom (Target Price: Rs 1,747), Chalet Hotels (Target Price: Rs 1,106), Titagarh Railsystems (Target Price: Rs 1,510), Arvind Fashions (Target Price: Rs 725), Newgen Software Technologies (Target Price: Rs 1,475) are projected to see substantial upside potential in the coming months.
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. Times Now Digital suggests its readers/audience to consult their financial advisors before making any money related decisions.)