65 Stocks Under Rs 100 Delivered 1,820 Per Cent Returns in 2024—Will the Rally Continue in 2025?

Foreign Institutional Investors (FIIs) remained net sellers for a significant portion of the year, exerting pressure on market sentiment.

The Indian stock market in 2024 navigated a challenging landscape marked by global economic uncertainties, inflationary pressures, and fluctuating foreign investor sentiment. Despite these headwinds, key indices demonstrated resilience, delivering positive returns albeit at a moderated pace compared to the previous year.  

Key Market Movements:

• Benchmark Indices:
  • Sensex: The BSE Sensex, a benchmark index representing 30 of the largest and most actively traded stocks on the Bombay Stock Exchange, achieved a year-end gain of less than 10 per cent.  
  • Nifty 50: The National Stock Exchange of India's Nifty 50 index, comprising 50 of the largest and most liquid stocks listed on the exchange, registered a single-digit gain.  
• Record Highs: Both indices scaled new peaks during the year, with the Nifty 50 touching an all-time high of 26,277.35 in September 2024. The Sensex concurrently crossed the 85,978.35 mark, reflecting strong corporate earnings and sustained domestic investor interest. BSE 100 increased by 12.1 per cent, BSE 150 Mid-Cap increased by 25.7 per cent, BSE 250 Small-Cap segments increased by 23.4 per cent and BSE 500 has seen a surge of 14.5 per cent in 2024. BSE 150 Mid-Cap has changed most compared to Sensex, BSE 100, BSE 250 Small-Cap and BSE 500.
• Sectoral Divergence:
  • Outperformers: The Pharma, IT and financial sectors emerged as prominent outperformers, driven by robust earnings growth and a favourable regulatory environment.
  • Underperformers: Sectors such as metals and energy faced challenges due to the global economic slowdown and fluctuating commodity prices.

Driving Forces Behind Market Performance:

• Economic Growth: India's continued economic growth, albeit moderated, provided a supportive backdrop for the stock market. However, concerns about slowing global growth and its potential impact on Indian exports sometimes weighed on investor sentiment.
• Inflation and Monetary Policy: Rising inflation prompted the Reserve Bank of India (RBI) to adopt a tightening monetary policy stance with a series of interest rate hikes. This impacted corporate borrowing costs and dampened investor enthusiasm in certain sectors.
• Global Uncertainty: Geopolitical tensions, the ongoing war in Ukraine, and the potential for a global recession created a backdrop of heightened uncertainty, impacting investor risk appetite.  
• Foreign Investor Flows: Foreign Institutional Investors (FIIs) remained net sellers for a significant portion of the year, exerting pressure on market sentiment. However, robust inflows from Domestic Institutional Investors (DIIs), such as mutual funds and insurance companies, provided crucial support to the market.  

In 2024, 65 stocks priced under Rs 100 delivered staggering multibagger returns of up to 1,820 per cent, making them a hot topic for investors. Can these stocks sustain their growth momentum in 2025?

Disclaimer: The article is for informational purposes only and not investment advice.