Indian Markets End 2024 Flat Despite Recovery Efforts

The Indian stock market indices BSE Sensex and NSE Nifty 50 closed flat on the last trading day of 2024. Declines were noted in IT and banking sectors, with gains in health care and PSU stocks. The market remains fragile amid global challenges and domestic economic factors.

The Indian benchmark equity indices, BSE Sensex and NSE Nifty 50, experienced a partial recovery from intra-day lows, yet concluded the last trading session of 2024 nearly unchanged on Tuesday. Declines were predominantly driven by significant losses in IT and select banking stocks.

BSE Sensex fell to a low of 77,561, due to global market weaknesses, but recovered to a peak of 78,248 before settling at 78,139, a decrease of 0.14 percent or 109 points. Similarly, the NSE Nifty 50 rebounded from a low of 23,460, rose to 23,690, and eventually closed at 23,644.80, almost flat.

On the NSE, gainers included Bharat Electronics Limited, ONGC, Kotak Bank, Trent, and Coal India. On the contrary, Adani Enterprises, Tech Mahindra, TCS, Infosys, and SBI Life were top losers, impacted heavily by IT sector declines, while healthcare and PSU stocks provided market support.

"As we head into 2025, investors should brace for potential profit booking in high-performing stocks and indices," remarked VLA Ambala, Co-Founder of Stock Market Today. "Macro factors such as inflation, a depreciating rupee, and escalating unemployment could undermine market stability, with more youth resorting to stock trading for income generation," she elaborated.

Ambala highlighted the role of FDI in India's market dynamics, noting that foreign institutional investors (FIIs) became net sellers in 2024, with outflows amounting to nearly Rs. 25,000 crore, counteracted by domestic institutional investors' (DIIs) net buying of more than Rs. 5.5 lakh crores. The market is predicted to remain subdued in the coming weeks with 2025 potentially testing investor resilience against the bullish patterns observed in 2023 and 2024.

Experts pointed out a sluggish December for most emerging markets, with Indian markets declining over the past three months. Future upward momentum will depend on third-quarter results and policies enacted by Trump upon assuming office in January. Over the year, Sensex achieved an 8.2 percent or 8,809 point gain, peaking at 85,978, while Nifty 50 posted an 8.8 percent growth, marking its 9th consecutive year of gains, accumulating approximately 200 percent over this timeframe.

The Indian rupee ended at a record low of 85.61 against the dollar, dipping 0.1 percent on the year's final trading day and 2.8 percent over the year. Gold posted a 26 percent increase, buoyed by geopolitical tensions and central bank acquisitions, with silver outperforming with a 42 percent rise. Expectations place gold prices at Rs 82,000 in early 2025. Oil prices showed marginal gains, with Brent crude and WTI increasing by 0.8 percent, although both remain on track for annual declines for the second consecutive year. Sector performance varied, with a 1.5 percent drop in the Nifty IT index, while Oil & Gas, PSU Bank, Pharma, and Metal indices advanced.

The India VIX, an indicator of market volatility, escalated by 3.5 percent to 14.47. In the primary market, Unimech Aerospace and Manufacturing achieved an impressive debut, listing at Rs 1,491, an 89.9 percent premium over its issue price of Rs 785.(ANI)

(With inputs from agencies.)