New Delhi, Mar 28 (PTI) Dalal Street investors became richer by Rs 25.90 lakh crore in the entire 2024-25 financial year, with the BSE benchmark Sensex climbing over 5 per cent, amid an overall optimistic trend in equities.
After a stellar show in 2023-24 fiscal, stock markets had a roller coaster ride in FY25.
In the 2024-25 fiscal, the BSE bellwether gauge jumped 3,763.57 points or 5.10 per cent, and the NSE Nifty climbed 1,192.45 points or 5.34 per cent.
The market capitalisation of BSE-listed firms surged by Rs 25,90,546.73 crore to Rs 4,12,87,646.50 crore (USD 4.82 trillion) in FY25.
“FY25 proved to be an eye-opener for new market participants, marking a departure from the continuous bull run they were accustomed to. While robust retail participation and domestic inflow drove a rally in the equity markets, FIIs turned cautious, selling off positions as valuations elevated due to the strong bull run and global uncertainties.
“Lower-than-expected corporate earnings particularly in the second half of FY25 further compounded the pressure on valuations. At the fiscal year end, policy actions by the new Trump administration added another layer of volatility which intensified market corrections,” Palka Arora Chopra, Director, Master Capital Services Ltd, said.
The Sensex hit its all-time high of 85,978.25 on September 27, last year.
Stock markets came under bear attack from October onwards amid worries over foreign investors fleeing the domestic market and stretched valuations of the equities.
In October 2024 alone, the BSE benchmark slumped 4,910.72 points or 5.82 per cent.
But, heavy retail investors’ participation played a significant role in the overall market’s positive trend this fiscal.
Also, a number of mainboard Initial Public Offerings (IPOs) and listing of shares imparted optimism in the equity markets.
The major positive drivers behind the equity markets this fiscal were favourable election outcome and a surge in retail participation, according to Palka Arora.
“The election result boosted investors confidence by signalling political stability and continuation of the policies, which helped set a positive tone across the markets,” she added.
On the last trading day of the 2024-25 fiscal on Friday, the 30-share BSE Sensex declined 191.51 points or 0.25 per cent to settle at 77,414.92 in a volatile trading session. The Nifty dropped 72.60 points or 0.31 per cent to 23,519.35.
“It really is a tale of two halves for Indian equities in FY25. Markets entered the fiscal year during the start of general elections in a range-bound fashion and have been volatile till the results in June with flat performance but went on to hit multiple record highs in Jun-Sep period after the coalition government headed by PM Modi signalled policy continuity despite BJP not getting majority on its own,” Satish Chandra Aluri, Analyst, Lemonn Markets Desk, said.
However, the tone dramatically shifted from October as Q2 corporate earnings disappointed bringing elevated valuations back into focus as foreigners started to exit India, he noted.
“Coupled with global developments such as China’s massive stimulus as well as the return of Trump after the US election, foreign outflows accelerated,” Aluri said.
In 2023-24 fiscal, the Sensex climbed 14,659.83 points or 24.85 per cent.
The market cap of BSE-listed companies had soared by Rs 128,77,203.77 crore to Rs 3,86,97,099.77 crore in FY24.
“After rallying ~17% in the first half of fiscal year, markets recorded 5 consecutive monthly declines from Oct-Feb 2025 – a record not seen in the last 29 years – on disappointing earnings, sharp devaluation and foreign exodus,” Aluri noted.
Markets staged a rebound in March to close out the fiscal year in gains, despite weak global cues due to Trump’s tariff threats and concerns over slowdown in the US, he added.
According to Aluri, FY25 also saw widespread euphoria in the IPO markets.
Reliance Industries is the country’s most valued firm with a market valuation of Rs 17,25,377.54 crore, followed by HDFC Bank (Rs 13,99,208.73 crore), TCS (Rs 13,04,121.56 crore), Bharti Airtel (Rs 9,87,005.92 crore) and ICICI Bank (Rs 9,52,768.61 crore) in the top five order.
Aluri believes that markets are entering the new fiscal with better fundamentals and improving domestic outlook as valuations are now close to historic levels for large caps while RBI is expected to deliver further rate cuts in the coming months.
However, global uncertainty continued to rise with trade wars and shifting geopolitical headwinds from the Middle East to Europe, he said. (PTI)