The Indian stock market saw significant wealth creation in 2024, with companies like Trent and Zomato leading the charge. Trent’s stock rose by 131%, increasing its market cap by Rs 1.42 lakh crore to reach Rs 2.51 lakh crore. Zomato, newly added to the Sensex, saw its stock rise by 121%, with a market cap increase of Rs 1.55 lakh crore, reaching a total of Rs 2.63 lakh crore.
Looking ahead to 2025, market analysts suggest focusing on emerging trends and stocks in technology, healthcare, and sustainable energy sectors for potential growth opportunities. ICICI Direct has identified eight stocks that could deliver returns between 15% and 25% over the next 12 months. Mutual funds, other DIIs, and individuals have been consistently infusing funds into the equity secondary market, with SIP inflows alone standing at around 3 trillion every year.
However, the top-performing asset of 2024 was surprisingly Diljit Dosanjh’s pan-India concert tickets, which sold for twice or thrice their original prices within hours.
Wealth creation insights for investors
The stock market in 2024 was marked by hype and exuberance, with sectors like pharma, manufacturing, infrastructure, power, and green energy performing well.
However, investors learned the importance of knowing when to exit the market, as seen in the case of Cochin Shipyard, which slumped 30% in the last six months after reaching an all-time high. Mid and small-caps shined the brightest in 2024, registering returns of ~25-26% respectively, the highest among key global peers. This is despite their ~11-12% correction from September to October.
Large-cap returns in 2024 have been modest (~10%), underperforming many of their global peers. For 2025, analysts are optimistic about growth picking up and inflation moderating. Investors should monitor trends in government and private spending, monsoon expectations, policy decisions by the incoming USA government, and valuations to make informed investment decisions.
