Japan at record highs, China down: Here's how global and domestic equity markets performed in FY24

Global equity markets have ended the Financial Year 2023-24 (FY24) on a higher note. Major global equity benchmarks surged significantly and rose up to 44% this year. This outperformance was led by a bull run in major markets such as the US, India, and Japan. Chinese and Singapore stock markets, however, ended in the red.

Global Equity Performance

Asia

This financial year, most global equity markets have provided handsome returns to investors. In Asia, the Japanese stock index, Nikkei 225 jumped 44% to 40369.4 on March 29, 2024 from 28041.5 on March 31, 2023. Nikkei 225 index created its new all-time high after nearly three and a half decades as the earlier record of 38,915.87, was set in December 1989.

Japan is followed by the Indian equity benchmark BSE Sensex, which gained 24.9% to close at 73,651.3 on March 28. On the other hand, the Straits Times index of Singapore slipped 1.1% to 3,224. The Chinese benchmark Shanghai Composite Index tanked 7.1% to close at 3041.2.

US

In the US, the Dow Jones index jumped 19.6% to 39,807.4 on March 28, 2024 from 33,274.1 a year ago, while the tech-heavy Nasdaq index zoomed 34% in FY24 to settle at 16,379.4 from 12,221.9 level.

Europe

While in Europe, the German equity index DAX was up 18.3% in FY24 to close at 18,492.5 on March 28, 2024 from the 15,628.8 mark at the end of FY23, the French CAC 40 index surged 12.1% to close at 8205.8, and the British stock benchmark FTSE100 gained 4,2% to settle at 7,952.6 level on March 28, 2024.

Indian Equities: In FY24, while the large-cap Index BSE Sensex gained 24.9%, the broader market benchmarks significantly outperformed the large caps. The Small Cap benchmark, BSE Smallcap surged 60.1%, and the top-performing BSE Midcap index Jumped 63.4% this financial year.

Sector-wise, the BSE Realty index surged the most (129%) during the financial year FY24. BSE Power index registered a gain of 86% followed by BSE Capital Goods jumped 77%. On the other hand, the BSE Bankex and BSE FMCG index underperformed the BSE Sensex, and gained 16% and 17% respectively. 

As many as 46 stocks in the Nifty 50 index delivered a positive return for investors in FY24. With an annual gain of 136%, Tata Motors emerged as the top gainer in the index. It was followed by Bajaj Auto (135%), and Adani Ports (112%). Coal India (103%), and Hero MotoCorp (101%) also advanced by over a hundred percent.

On the other hand, UPL, Hindustan Unilever, and HDFC Bank declined 36%, 11%, and 10%, respectively.

Outlook for FY25

Vinod Nair, Head of Research at Geojit Financial Services, said, "FY24 marked a rewarding period for the Indian market. In NSE indices, large caps recorded a substantial 33% return, midcaps surged by 56%, and small caps excelled with an impressive 63%, as indicated by the respective broad indexes. It was loaded by the upgrade in FY24 economy growth, as the Indian GDP forecast was uplifted on a QoQ basis from 6.4% to 7.3% during the year."

He further said there was a rampage in corporate earnings growth, like with the 23-24% YoY EPS forecast for the Nifty50 index. "Retail inflows remained robust, supported by direct investments as well as investments through MFs. The number of trading accounts held by domestic investors reached 16.7cr, underscoring increased market participation. Additionally, FIIs exhibited improved net buying activity, buoyed by India's economic outperformance relative to other EMs experiencing slowdowns."

"As we move on to a new financial year, we express optimism towards sectors such as Pharma, Capital Goods, and Infra, as we see them as key growth drivers, supported by both domestic and external demand. Although some sectors like FMCG and IT are facing challenges due to subdued demand at present, we anticipate a turnaround, driven by expectations of a normal monsoon and increased US demand following the Fed's rate cut. However, the focus is on large caps, as the premium valuation of Midcaps could have a hiccup in the short to medium-term," Nair added.