Domestic stock markets to end 2024 on positive note

New Delhi

Domestic stock markets are set to finish 2024 with a positive performance, as the Nifty has registered a 13% gain year-to-date, marking its ninth consecutive year of positive returns. A report on Saturday highlights the key factors driving the market’s growth, including strong corporate earnings, a surge in domestic flows, and a resilient macroeconomic environment.

The first half of the year saw the Nifty reach an all-time high of 26,277 in September, as markets navigated various global and domestic challenges, including geopolitical tensions, India’s General Elections, and the Union Budget. Despite some market dips, these were quickly followed by strong buying activity, reinforcing investor confidence.

However, the report suggests that 2025 may unfold in two phases. The first half could see continued market consolidation, while a recovery may occur in the latter half. Over the past two months, the market has corrected by 11% from its peak, driven by selling from foreign institutional investors (FIIs) due to a combination of domestic and global factors.

Looking ahead, Indian markets are expected to be influenced by several factors, including an anticipated rate cut by the Reserve Bank of India (RBI) in February, US rate cuts, and trade policy changes after the new US administration. The Union Budget in February will also be a key event, offering signals to the market.