Indian markets to deliver positive returns for 9th year in a row, outperform US

New Delhi, Dec 25: Driven by strong fundamental and robust economic growth, the domestic benchmark indices are set to give positive returns in 2024 for the ninth consecutive year.

As per a report by Standard Chartered bank, 2024 was a year of two distinct halves for Indian equities and bonds. While the first half saw strong growth, supported by robust economic activity and corporate earnings, second half was marked by volatility amid consolidation.

“2024 was a year of two halves with H1 seeing strong performance of Indian equities and bonds on strong economic growth and corporate earnings delivery. However, H2 witnessed a surge in volatility,” according to the report.

Despite this, Nifty 50 index has gained 9.21 per cent while the Sensex index rose by 8.62 per cent.

Another report by Motilal Oswal said that Indian equities have outperformed US markets over the past 35 years, as investments in the Indian equity markets growing by nearly 95 times since 1990.

If someone had invested Rs 100 in Indian stock markets in 1990, it would have grown to Rs 9,500 by November 2024. In comparison, Rs 100 invested in US stock markets 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 subdued earnings performance in the first half of FY25, earnings are expected to recover in H2, driven by increased rural spending, a buoyant wedding season, and pickup in government spending.

“We further expect earnings to gain momentum, delivering a 16 per cent CAGR over FY25-27E. Moreover, the recent market correction and the moderation in valuations offer an opportunity to add selective bottom-up stock ideas,” it mentioned.

“We remain optimistic about the long-term trend, given the strength of corporate India’s balance sheets and the prospects for robust, profitable growth,” the report noted.