Market Highs and Lows: A Year of Two Halves

For investors on Dalal Street, 2024 unfolded in two distinct phases. The first nine months saw the Sensex and Nifty reaching new heights, only for a sudden wave of foreign portfolio investor (FPI) selloffs to erase significant gains. The indices, after peaking at 85,978 and 26,277 points respectively in late September, experienced sharp declines in the following two months.

Investor Behavior and Market Predictions

Sheetal Malpani, CIO & Head of Equity at Tamohara Investment Managers, noted the initial stock demand that propelled indices upward, followed by an IPO surge that tempered annual returns. Malpani anticipates a market correction in 2025, either through price adjustments or earnings growth over time, highlighting the resilience of new investors post-April 2020.

Shifting Investor Preferences

2024 also marked a shift towards small and midcap stocks, with the Nifty Midcap 50 and Smallcap 50 indices outperforming the Nifty. Additionally, Indian investors showed a strong preference for IPOs, often at the expense of secondary equities.