Top Gainers and Laggards in Indian Equity Market 2024

The Indian equity markets in 2024 witnessed significant volatility, marked by a sharp correction after a prolonged bull run. The early months of the year were characterized by robust corporate earnings and strong macroeconomic trends, driving the Nifty to record-breaking levels, with the index peaking at an all-time high of 26,277 in September.

Invest in Indian Markets and Unlock Future Potential With 5paisa!

Open Account Now

However, this upward momentum reversed in the latter part of the year, influenced by various factors such as the Indian general elections, fluctuations in yen carry trade, China’s economic stimulus measures, and uncertainties surrounding Donald Trump’s potential return to the U.S. presidency.

Despite these headwinds, a few standout performers from the Nifty index emerged as top wealth creators in this challenging landscape:

Top Gainers

Trent | +132% YTD

Trent, a retail powerhouse under the Tata Group, has delivered exceptional performance, achieving its second consecutive year of doubling its stock price. This growth trajectory, consistent since 2014, is driven by strong financial results, aggressive retail expansion, and advancements in its Star business. The company has also strengthened its digital presence, boosting investor confidence. With steady Same-Store Sales Growth (SSSG) and enhanced profitability, Trent’s inclusion in the Nifty 50 in September further cemented its status as a market leader.

M&M | +76% YTD

Mahindra & Mahindra has had a stellar year, recording its best stock performance since 2009. The automaker's success is attributed to its strategic push into the electric vehicle (EV) segment and its growing dominance in the SUV market. During Q2FY25, M&M increased its revenue market share in SUVs by 190 basis points and saw a positive reception for the Thar Roxx. The launch of its "Born Electric" lineup, featuring models like the BE 6e and XEV 9e, highlights its commitment to innovation in the EV space.

Bharat Electronics | +58% YTD

Bharat Electronics has been a key beneficiary of increased government defense spending, which, coupled with strong order inflows, has driven its remarkable performance. The company's revenue growth and margin expansion in Q2FY25 have reinforced its position as a top Nifty 50 performer, with investors optimistic about the defense sector's future.

Bharti Airtel | +54% YTD

Bharti Airtel 2024 performance has been its best since 2017, with a 54% stock price increase despite challenges such as legal disputes related to penalties and interest from a 2019 ruling. The telecom giant’s ability to add subscribers in October, even as competitors Jio and Vodafone Idea saw losses, has further strengthened its market position.

Sun Pharma | +47% YTD

With a commanding lead in the high-margin specialty segment, Sun Pharma continues to outpace competitors like Dr. Reddy’s and Cipla. Despite regulatory challenges affecting its Mohali plant in Q2FY25, the company has shown consistent profit growth and maintained a robust dividend payout. With the plant now cleared, analysts anticipate a recovery in its U.S. sales in upcoming quarters.

Top Laggards

IndusInd Bank | -40% YTD

IndusInd Bank has been the weakest performer in the Nifty 50, losing over 40% of its value due to high exposure to microfinance and rising slippages, which surged 18% sequentially in Q2FY25. The bank’s plans to offload ₹1,573 crore in microfinance loans will be closely monitored by investors seeking signs of improvement in its financial health.

Asian Paints | -33% YTD

Asian Paints, the leading decorative paint manufacturer, has endured a challenging year, with a 33% decline in its stock value. Weak demand, competitive pressures, and a re-rating of its price-to-earnings ratio have contributed to a market capitalization loss exceeding ₹1 lakh crore, making it the largest loss on Dalal Street in 2024.

Nestle India | -18% YTD

Nestle India faced headwinds due to consumer concerns over high sugar content in key products like Cerelac and Nido. Rising commodity costs, food inflation, and lackluster urban demand have further weighed on the company’s performance, resulting in a significant underperformance.

Tata Consumer Products | -15.47% YTD

Erratic weather and inflationary pressures have hurt Tata Consumer Products' tea and salt businesses. Declining market share in the tea segment, along with struggles in its beverage and ready-to-drink categories, have contributed to its lackluster stock performance.

Adani Enterprises | -15.44% YTD

Adani Enterprises has faced a turbulent year, with its stock price affected by earnings pressures, regulatory challenges, and allegations of misconduct in securing power contracts. These issues, combined with ongoing scrutiny from Hindenburg Research, have kept investor sentiment subdued.