2024 has been a pivotal year for India’s stock market, reflecting both domestic resilience and global interconnectedness. Despite volatility stemming from geopolitical tensions, high interest rates, and global commodity fluctuations, Indian equities demonstrated strong relative performance compared to many emerging markets.
One of the defining features of 2024 was the consistent inflow of foreign institutional investment. Global investors, seeking diversification and growth beyond the US and China, turned increasingly to India. Sectors such as banking, information technology, and pharmaceuticals drew particular attention, while green energy and infrastructure stocks showcased India’s long-term structural potential.
From my vantage point at SAMCO, the year also highlighted the strength of India’s retail participation. Millions of first-time investors entered the market through low-commission trading platforms, adding significant depth to daily turnover. This democratization of access was matched by the accelerated adoption of AI tools, helping both retail and institutional investors to rebalance portfolios dynamically and mitigate risks in a high-volatility environment.
Corporate earnings remained steady, though uneven across industries. While IT services faced global headwinds, domestic consumption and infrastructure spending provided a strong counterbalance. Notably, mid-cap and small-cap companies outperformed benchmarks, reflecting investors’ appetite for growth stories tied to India’s expanding middle class and government-led capital expenditure.
In reviewing 2024, I emphasize three key takeaways: first, the resilience of India’s domestic demand remains unmatched in the emerging world; second, technological adoption in trading and risk management is no longer optional but essential; and third, India’s structural reforms continue to provide a strong foundation for long-term growth.