The announcement of the Union Budget 2024-2025, outlined an ambitious expenditure plan of ₹48.21 lakh crore, aimed at revitalizing industries with an ₹11.1 lakh crore capital investment in infrastructure, ₹2.66 lakh crore for rural development, and ₹1.48 lakh crore for the education sector, jobs, and skill development, aiming to foster technological advancement and equip the workforce with necessary skills.
Another pivotal moment came in October with China’s announcement of a $1.4 trillion stimulus package. Aimed at reigniting its slowing economy, the move had a ripple effect across global markets. In India, it triggered a record outflow of ₹85,000 crore by Foreign Institutional Investors (FIIs), who were lured by attractive opportunities in China. However, Domestic Institutional Investors (DIIs) rose to the occasion, injecting nearly ₹1 lakh crore into the market and ensuring stability. The stimulus also boosted commodity-linked sectors like metals and mining, even as it raised concerns in manufacturing industries that faced tougher competition from China.
While the markets adjusted to these global currents, India’s IPO story was making history. By December 2024, 298 companies have gone public, raising a staggering ₹1.406 trillion — an increase of 139% over the previous year. Retail investors played a significant role in driving this momentum, their enthusiasm powering a surge in both mainboard and SME listings.
Amid these developments, Systematic Investment Plans (SIPs), reached unprecedented heights. By October, monthly contributions had surged to ₹25,323 crore—a 20% increase compared to the previous year. This consistent flow of funds from retail investors became a stabilizing force, especially as global pressures began to reshape the market.
Globally, central banks dealt with economic uncertainty, cutting interest rates to stimulate growth. The U.S. Federal Reserve, European Central Bank, and Bank of England all lowered rates, reflecting a cautious approach to inflation and sluggish growth. The Nifty 50 index delivered a 13.23% annual return. While this fell short of 2023’s 19.42% gain, it underscored the market’s ability to weather external shocks and maintain investor confidence.As we explore the year’s market trends, the performance of individual stocks offers a compelling narrative. Building on the broader market movements and sectoral shifts, these six companies highlight how financial health, operational strategies, and external pressures shaped the year’s stock market dynamics.
Sundaram Brake Linings, a key player in the automotive materials manufacturing sector, stood out as a steady performer in 2024, with its stock rising by an impressive 50.33%. It manufactures friction materials for automotive, non-automotive, railways, and industrial, such as – brake linings, brake pads, and clutch facings.
On the basis of Factor Analysis powered by Share.Market Research, this stock rates 3/5 on momentum, 4/5 on quality, and 3/5 on low volatility. The stock is considered to have good quality fundamentals, exhibits low price fluctuations, and is somewhat expensive compared to its peers.
Sundaram Brake Lining’s strength lies in its established expertise in its braking solution and presence in both OEM and aftermarket segments. The company sees opportunities due to the rising demand for braking systems, especially after the increased growth in the electric vehicles segment. Due to this increased demand, the company also faces increasing competition. One key challenge the company might encounter is its limited product diversification. However, the company’s strong quality helps it become a stable performer in the automotive space.
IST Ltd., a company specializing in precision components for the automotive industry, showcased its strength as an industrial leader, with its stock climbing 33.92%.
This stock rates 2/5 on momentum, 5/5 on quality, and 5/5 on low volatility. The stock showcases excellent quality with low price fluctuations but lags in momentum.
The company’s ability to meet growing export demand and maintain a diversified product portfolio proved advantageous. As industrial activity gained momentum, in both domestic and global markets, IST was well-positioned to take advantage. However, the cyclical nature of industrial demand presents challenges, emphasizing the importance of diversifying further into sustainable and emerging sectors.
ETMarkets.comCEAT’s 40.03% stock price growth reflected its ability to ride the electric vehicle (EV) wave. With innovative tyre solutions and an increased focus on export markets, the company tapped into the rising demand for EV components. While CEAT’s growth story is compelling, it faces hurdles in managing raw material costs and staying ahead in a competitive market. Its ability to innovate and expand into new markets will play a critical role in maintaining its upward trajectory.
This stock rates 4/5 on momentum, 4/5 on quality, 4/5 on value, 5/5 on low volatility, and 4/5 on sentiment. It is seen as an outperformer with strong fundamentals and low price fluctuations.
ETMarkets.comCochin Shipyard emerged as one of 2024’s top performers, with its stock soaring by an astounding 146.36%.
This stock rates 3/5 on momentum, 4/5 on quality, 2/5 on value, and 1/5 on low volatility. The stock is considered to have good quality fundamentals but exhibits high price fluctuations and is somewhat expensive compared to its peers.
The company capitalized on a robust order book supported by government spending on defense and commercial shipbuilding. Its ability to secure global contracts highlights its expanding footprint. However, the cyclical nature of the shipbuilding industry remains a challenge, making diversification into steady revenue streams a key consideration for future growth.
ETMarkets.comNot all stocks shared the same upward momentum. Chennai Petroleum Corporation saw its stock fall by 14.56%, grappling with volatile crude oil prices and competitive pressures.
This stock rates 1/5 on momentum, 4/5 on quality, 5/5 on value, and 3/5 on low volatility. Despite being highly undervalued and maintaining good quality, the stock shows weak momentum and moderate price fluctuations.
The strain on refining margins added to its woes, reflecting a tough year for the company. However, with a strategic push toward petrochemical and downstream product expansion, Chennai Petroleum has opportunities to recover, even as global uncertainties continue to cast a shadow over its operations.
ETMarkets.comFor CreditAccess Grameen, 2024 was a year of significant challenges, with its stock declining by 41.03%.
This stock rates 1/5 on momentum, 1/5 on quality, 5/5 on value, 5/5 on low volatility, and 1/5 on sentiment. The stock is highly undervalued with low price fluctuations but suffers from poor quality.
Operating in the microfinance sector, the company faced economic uncertainties in rural areas, affecting borrower repayments. While it remains a leader in financial inclusion, operational risks in volatile rural markets proved to be a major hurdle. The company’s ability to strengthen its risk management framework will be key to regaining momentum in the coming years.
ETMarkets.comThese stocks encapsulate the highs and lows of 2024’s market dynamics. From the exceptional growth of Cochin Shipyard to the struggles of CreditAccess Grameen, each company’s journey highlights the interplay between opportunity and risk.
As 2024 comes to an end, it serves as a reminder of the dynamic and interconnected nature of the global markets. This year’s journey, marked by various global events, policy decisions, and sectoral shifts, underscores the importance of being able to adapt and make informed decisions in the constantly changing landscape. Despite the ups and downs, the market’s resilience was evident through developments like the strong surge in IPO activity, the increase in SIPs, and the continued confidence of DIIs when FIIs reduced their exposure. Thus reflecting not just the trend for the year, but the market’s ability to recover and adapt in uncertain times.
(The author Sujit Modi is CIO, Share.Market. Views are own)
