Market Outlook - December 2024

Market Update

Indian equity markets remained volatile through November, with the Nifty ending the month marginally lower by 0.3%. Sector performance was uneven: Information Technology (IT) emerged as the top performer (+6%), followed by consumer durables (+3%) and capital goods (+2.3%). On the downside, sectors like power, metals, and oil & gas faced declines, with losses of 4.3%, 2.4%, and 2.3%, respectively. Major global and domestic developments included Donald Trump’s win in the US Presidential election, BJP’s victory in Maharashtra’s assembly elections, and rising geopolitical tensions, which collectively influenced investor sentiment. Despite a weaker-than-expected 2QFY25 corporate earnings season, the decisive victory of the BJP-led Mahayuti alliance in Maharashtra offered some positive momentum to the market.

In terms of investment activity, Foreign Portfolio Investors (FPIs) offloaded US$4.7 billion of Indian equities in the secondary market (until November 28), whereas Domestic Institutional Investors (DIIs) bought US$5.3 billion worth of stocks by (November 29). Internationally, markets showed a mixed trend: Philippines (-7.4%), Indonesia (-6.1%), and Hong Kong (-4.4%) recorded significant losses, while US SPX (+7.5%), Singapore (+5.1%), and Australia (+3.4%) saw positive gains.