Winning Bizness Desk

Mumbai. The Indian stock market has delivered impressive returns for investors in 2024, with the BSE Sensex generating a gain of 17% from January to September. During this period, the total market capitalization of companies listed on the Bombay Stock Exchange (BSE) increased significantly by Rs 110.57 lakh crore, reaching a record high of Rs 477.93 lakh crore on September 27. The Sensex itself surged by 12,026 points, climbing from 72,271.94 at the beginning of the year to its all-time high of 85,978 by late September.

Market analysts attribute this strong performance to several key factors, including the resilience of the Indian economy and robust domestic liquidity. Retail investors played a significant role, channeling funds into the market, particularly through mutual funds. This bullish trend occurred despite selling pressure from Foreign Institutional Investors (FIIs). Midcap and smallcap indices outperformed, with the BSE Midcap Index gaining 12,645 points (34.32%) and the Smallcap Index rising by 14,777 points (34.62%). One of the driving forces behind this market momentum has been the easing of interest rates in the U.S., which has boosted liquidity and investor confidence in emerging markets like India. Additionally, crude oil prices remained relatively low throughout the year, despite geopolitical tensions, helping to ease inflationary pressures in the domestic economy.

The performance in 2024 follows a strong year in 2023, during which the BSE Sensex gained 11,399 points, representing an 18.73% increase. Investors saw their wealth grow by nearly Rs 82 lakh crore during that year, and the market capitalization crossed several key milestones, surpassing Rs 5 lakh crore for the first time in May 2024. Overall, the stock market's performance in 2024 has been beneficial for retail investors, many of whom have seen substantial returns on their investments in midcap and smallcap stocks.