2024 Market Recap: Winners and Losers
December Disappointment
2024 Stock Market Recap – As 2024 comes to a close, investors are hoping for a last-minute rally to end the year on a high note. However, December has been a bit of a downer so far, with markets in India experiencing volatility and US indices taking a steep dive. The Federal Reserve’s cautious comments about future rate cuts have been a major factor in this downturn.
Fed Chair’s Impact
When Federal Reserve Chair Jerome Powell mentioned that rate cuts would be slower in the coming year, it sent shockwaves through the markets. The Nifty 50 in India dropped 2.5% in just two trading sessions following his remarks. If the Fed continues to keep US interest rates high, foreign investors may choose to invest in safer US bonds rather than riskier emerging markets like India.
2024 Winners
Despite the lackluster performance in December, 2024 was actually a great year for global equity markets. But which index came out on top for the year? And which sectors and stocks were the driving force behind the market surge? Let’s take a closer look at the stars of 2024.
Global Index Round-Up
Major economies around the world saw their equity markets thrive in 2024, thanks to cooling inflation and interest rate cuts by central banks. Taiwan’s Weighted Index stood out as the top performer, with its semiconductor and electronics sectors booming due to increased AI investments.
The US S&P 500 and Nasdaq 100 also had strong showings, while India’s Nifty 500 saw an 18% rise despite some setbacks in the past quarter. China’s Shanghai Composite rebounded with a 23% increase, thanks to government stimulus efforts.
Top Stocks of 2024
The tech sector dominated in the US, with companies like Apple, Microsoft, and Amazon leading the charge. However, the coming year may bring more challenges as these companies need to show financial gains from their AI investments. Central banks played a key role in boosting stock markets, except for the RBI, which has yet to cut interest rates.
Sector Standouts
In India, sectors like general industrials, consumer durables, realty, and pharma saw significant growth in 2024. Defense companies like Mazagon Dock Shipbuilders and Bharat Electronics led the way in the general industrials sector, while solar energy player Premier Energies shined in consumer durables.
In the US, hardware technology, automobiles, and software and services were the star segments. Nvidia, Broadcom, and Walmart were among the top performers in these sectors.
Stock Screener
Looking ahead to Q3FY25, stocks with high Trendlyne Momentum and Durability scores, along with strong revenue forecasts, are worth keeping an eye on. Companies like BSE, KFIN Technologies, and Dixon Technologies (India) are showing promising signs for the upcoming quarter.
Overall, 2024 was a year of ups and downs in the global markets, with certain sectors and stocks standing out as the true winners of the year.
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Stay tuned for more updates and insights on the stock market! For more insights on investing in the Indian stock market, check out resources like Moneycontrol and NSE India.
Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.