Indian markets are poised to deliver positive returns for the 9th year in a row, outperforming the US
Driven by strong and robust economic growth, the domestic index is set to deliver positive gains in 2024 for the ninth year in a row.
According to a report by Standard Chartered Bank, the year 2024 was the year of two different halves for Indian stocks and bonds. While the first half saw strong growth, supported by strong economic activity and corporate earnings, the second half was marked by a slowdown amid consolidation.
“2024 was a year of two halves where H1 saw strong performance of Indian equities and bonds on strong economic growth and corporate income delivery. However, H2 saw increased volatility,” the report said.
Despite this, the Nifty 50 index gained 9.21 percent while the Sensex index rose 8.62 percent.
Another report by Motilal Oswal said that Indian stocks have outperformed US markets in the last 35 years, as investment in Indian equity markets has grown nearly 95 times since 1990.
If someone had invested Rs 100 in the Indian stock market in 1990, it would have grown to Rs 9,500 by November 2024. In comparison, Rs 100 invested in the US stock market during the same period would have grown to Rs 8,400, according to the report .
Moreover, gold delivered a return of 32 times during the same period.
According to another report by Motilal Oswal Wealth Management, after a weak earnings performance in the first half of FY25, earnings are expected to bounce back in H2, due to rising rural spending, the festive wedding season, and government spending.
“We also expect earnings to be strong, delivering a CAGR of 16 percent over FY25-27E. In addition, recent market corrections and valuations provide an opportunity to add low-quality stock ideas to the top,” it said.
“We remain optimistic about the long-term trend, given the strength of India’s business demographics and prospects for strong, profitable growth,” the report noted.
