(THE NEWSMAN OF INDIA.COM) By Abul Hasan
The Indian stock market witnessed an extraordinary year in 2024, marked by several key milestones that underscored the resilience and strength of the nation’s financial ecosystem. A major highlight was India’s market capitalization, which surpassed the US$5 trillion mark on May 23, 2024, securing its position as the world’s fourth-largest market. This remarkable achievement places India behind only the US, China (including Hong Kong), and Japan in terms of market size.

The Nifty50, India’s benchmark index, hit a significant milestone when it crossed the 25,000 mark on August 1st. The index continued to show impressive gains, peaking at 26,216.05 on September 26th, marking an 8.8% increase in 2024 alone. Similarly, the broader Nifty500 index surged to 22,375 by the end of the year, showing a substantial climb from 19,429 in December 2023.

In terms of listings, 2024 was a groundbreaking year for the National Stock Exchange (NSE), which saw a record-breaking 301 listings, including 33 direct listings. This made NSE the leader globally in terms of new listings for the year. The total funds raised via initial public offerings (IPOs) in 2024 amounted to a staggering Rs 1.67 lakh crore, with notable offerings such as Hyundai Motor India Limited’s IPO, which raised Rs 27,859 crore in October—India’s largest-ever IPO and the world’s second-largest in 2024.

The growth in investor participation was equally impressive. The number of individual investors in the Indian stock market soared, with the investor base surpassing 10 crore by August 2024 and reaching 10.9 crore by December. This marked an addition of 2.3 crore new investors—the highest in a calendar year. The trend was similarly reflected in the number of unique client codes (UCCs), which crossed the 20 crore mark in October 2024 and stood at 21.1 crore by December. This surge in investor registrations was also geographically diverse, with Uttar Pradesh emerging as a leading state for new investor registrations, surpassing Maharashtra.

The expansion of retail investor participation was a key contributor to the growth of the Indian stock market. As of September 2024, retail investors held 17.6% of the total market capitalization of NSE-listed companies, up from 10.9% in March 2014. This increase in retail ownership, both directly and through mutual funds, has led to a significant rise in wealth creation, with retail holdings rising more than tenfold from Rs 7.9 lakh crore in March 2014 to Rs 82.5 lakh crore in September 2024.

Another key milestone for NSE in 2024 was the performance of its SME segment. NSE EMERGE, the platform dedicated to small and medium enterprises, marked its 500th listing in July 2024. By the end of the year, the total number of listings on NSE EMERGE had reached 587, with these companies raising a total of Rs 15,639 crore since the platform’s inception in 2012. The IPO funds raised from SMEs in 2024 alone amounted to Rs 7,348 crore, a record for the platform.

The turnover in the secondary market also set new records. In July 2024, NSE saw 2.044 billion orders in a single day, the highest in its history. The month of June recorded several other milestones, including the highest-ever daily trades and a record turnover of Rs 2.71 lakh crore in the cash segment.

On the institutional front, domestic institutional investors (DIIs) posted their highest-ever net inflows of Rs 5.2 lakh crore in 2024, reflecting growing confidence in the Indian equity markets. Retail investors followed suit, achieving a record-high net inflow of Rs 1.65 lakh crore in NSE’s cash market, further driving the market’s growth.

NSE’s global influence was also evident in the growth of passive investing. In 2024, 11 new passive funds tracking Nifty indices were launched in Japan and Korea, with total assets under management (AUM) in such funds increasing to USD 4.9 billion by November. Domestically, the AUM of passive funds tracking Nifty indices grew to Rs 7.6 lakh crore in November 2024, up from Rs 5.9 lakh crore at the close of 2023. This growth reflects the increasing popularity of passive investment strategies among both domestic and international investors.

NSE also expanded its presence with the launch of 25 new indices in 2024, catering to the growing demand for passive and ESG-focused investment products. The exchange was recognized for its efforts, winning the “Best ESG Index Provider in India” award at the 2024 Best of the Best Awards by Asia Asset Management.

Throughout 2024, NSE continued to innovate in ways that benefit investors and the broader economy. In line with its commitment to financial inclusion, the exchange reached an impressive milestone of having investors registered in 99.84% of Indian pin codes by the end of the year. This expansion of reach was coupled with the launch of several new Common Investor Service Centres (CISCs), bringing the total to 37 by the close of 2024.

The year was not without its challenges, but India’s stock market proved to be resilient and dynamic, with growth across all facets—market capitalization, investor participation, fund-raising, and global influence. As the country enters 2025, the foundations laid in 2024 signal a bright future for India’s financial markets, continuing to attract both domestic and international investors while fueling economic growth.