Indian benchmarks blazed to record highs in the first few months of 2024 but slowing corporate earnings and an exodus of foreign funds curtailed their annual gains to about 8.5%, the least among major global peers, and even pushed stocks into correction territory.
The Nifty 50 and Sensex rose 8.8% and 8.2%, respectively, this year, logging their ninth straight year of gains, mostly on support from domestic institutional investors and policy continuity after India’s ruling party returned to power.
The benchmarks rose about 21% each to hit record highs on Sept. 27. They slipped into correction territory – a 10% drop from all-time high levels – in November, hurt by record monthly foreign selling in October and a moderation in earnings growth.
The blue-chips are still in correction territory. The smallcaps and midcaps gained about 24% each in 2024, outperforming the benchmarks for the second straight year as domestic investors and mutual funds piled on due to the return potential in these segments.
