Muhurat Trading 2024: Samvat 2080 was a remarkable year for the Indian stock market, with the Nifty 50 hitting an all-time high of 26,277 and the Sensex reaching 85,978 in September 2024 led by continued optimism about the economy, healthy earnings growth by India Inc., foreign capital flow. Over the last 12 months the Nifty 50, Nifty Midcap 100, and the Nifty Smallcap 100 indices have rallied 27 per cent, 45 per cent, and 42 per cent respectively.
Though the emergence of external factors, especially geopolitical tensions worldwide, affected the market’s performance, strong domestic flows and retail investor participation kept it buoyant. The total demat count surpassed the 171 million mark in August ’24, resulting in SIP inflows touching an all-time high trajectory.
Although an eventful Samvat 2080 is behind, an equally exciting Samvat 2081 awaits, with plenty of key events to watch out for, such as the US Presidential Elections in November 2024. While the US Fed has announced its rate cut decision, anticipating two more cuts in 2024, all eyes are on the Reserve Bank of India (RBI) rate cut announcement, which can relieve the banking and the non-banking financial company (NBFC) sector’s tight liquidity situation.
Key indices posted flattish performance in October, primarily due to foreign fund outflows from Indian bourses and the divergence to Chinese markets, given the attractive valuations and strong stimulus announcements. However, investors are taking this healthy correction as an opportunity to build diverse portfolios at better valuations and play on India’s long-term structural growth story.
Investors increase their exposure to several players associated with the industry-specific themes, largely falling under mid-cap and small-cap indices, leading to significant run-up in their valuations. As a result, the relative underperformance of key indices offers good entry opportunities in some large-cap companies, providing multiple growth levers and a healthy revenue visibility at current valuations.
