PERFORMANCE REPORT – Q4 2024

Between October and December 2024, the Indian stock markets experienced notable volatility, influenced by global economic uncertainties, foreign capital movements, and sector-specific developments.

Nifty exhibited a downtrend during this period. On Oct 31, the Nifty closed at 24,205.35. By Dec 31, it had declined to 23,644.80, reflecting a decrease of approximately 2.3% over the two months. This decline was attributed to factors such as record FII outflows and subdued corporate earnings, leading to a correction in the market.

India VIX showed significant fluctuations during this quarter. As of Oct 18, the VIX stood at 13.0375, indicating lower market volatility. However, by Dec 20, the VIX had risen over 8%, signaling increased market uncertainty and investor nervousness amid persistent selling pressures.

Certain sectoral indices stood out during this period. The banking sector, particularly BankNifty, showed resilience. Despite tepid credit growth guidance from major banks like HDFC Bank, the BankNifty closed with gains of 1.8% in the week ending Oct 18. This performance was driven by expectations that RBI might consider rate cuts in response to growth concerns, leading to a rally in both private and public sector banks.

Conversely, sectors such as IT, Auto, and Banking faced declines by Dec 20, reflecting investor concerns and high market volatility.