From several policy decisions to major shifts in global economic tides, 2024 has brought moments of both challenge as well as triumph. The announcement of the Union Budget 2024-2025, highlights 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 significant moment came in October with China’s announcement of a $1.4 trillion stimulus package. In India, it triggered a record outflow of ₹85,000 crore by Foreign Institutional Investors (FIIs), who were lured by 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 enhanced commodity-linked sectors such as 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. 298 companies have gone public by December 2024, raising a staggering ₹1.406 trillion, an increase of 139% over the previous year. Retail investors played a major 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. Monthly contributions had surged to ₹25,323 crore by October a 20% increase compared to the previous year. This consistent flow of funds from retail investors became a stabilizing force, especially as global pressures started to reshape the market.
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 an 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.
The performance of individual stocks offers a compelling narrative. 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 increasing 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 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.
CEAT’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 significant 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. Cochin 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. 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.
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