2024 market review: Realty and healthcare surge, FMCG struggles. What’s next for 2025?

The Indian equity markets in 2024 have shown a mixed performance across various sectors, with some industries outperforming while others lagged. According to the data available from ACE Equity, BSE Realty and BSE Healthcare indices were the standout performers in 2024, each delivering an impressive 40 percent year-to-date (YTD) return as on December 18, 2024.

These sectors reflected strong growth, driven by an upswing in real estate demand and significant advancements in healthcare.

The BSE Consumer Durables sector also demonstrated robust growth, posting a 32 percent YTD return, supported by increased consumer spending amid rising disposable incomes. 

The Indian equity benchmark, BSE Sensex, showed moderate growth, gaining just 11 percent over the year, highlighting steady but limited market-wide performance.

On the other hand, sectors like BSE Energy and BSE Bankex reported more modest returns, with gains of 10 percent and 9 percent YTD, respectively, suggesting moderate activity within energy and banking stocks. Meanwhile, the FMCG sector struggled, posting a meagre 1 percent YTD return. This underperformance points to sluggish momentum in the fast-moving consumer goods segment.

Looking ahead, many investors are focusing on several sectors to deliver strong returns in 2025. Heena Arora, the Founding Managing Partner at FundVice, shared her insights on the sectors to watch for investment in the coming year.

“2025 looks promising, with several sectors offering lucrative opportunities,” Arora explained. “The technology sector, especially areas like artificial intelligence (AI), cloud computing, and Software-as-a-Service (SaaS), continues to innovate and show strong growth. Additionally, automation, big data and cybersecurity are now integral to every industry as digitisation accelerates.”

Arora also highlighted the potential in the manufacturing sector, which is driven by government initiatives like Make in India. “India is emerging as a global manufacturing hub, particularly in electronics, automobiles and industrial goods. The sector’s focus on sustainability and Industry 4.0 technologies makes it a high-potential area for investment,” she added.

Healthcare is another sector primed for growth, fueled by rising health awareness, technological advancements and increased government spending. With booming opportunities across pharma, medical devices, and digital health, the sector remains a solid choice for investors.

Finally, the FMCG sector, while facing challenges in 2024, is expected to rebound in 2025. The ongoing rise in consumer spending, urbanization, and rural market expansion bodes well for FMCG companies.

“Changing lifestyles, higher disposable incomes, and growing demand for health, hygiene, and sustainability are helping FMCG companies adapt and thrive,” Arora noted.

As investors look ahead, these sectors — technology, manufacturing, healthcare and FMCG — are expected to lead the charge in 2025.