Hi Kish44,
You can try this link for PF comparison with Sensex
For stocks you can use valueresearchonline.com for pf returns.
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RECAP 2024
2024 was a year of elections with more than half of world’s economy by GDP and population undergoing election including India and US.
Indian capital markets saw a record surge in primary equity issuances while domestic investors continued to be big buyers in secondary market. Foreign Portfolio Investors (FPI), on the other hand, have remained on the side lines owing to there is comfort on higher valuations.
India’s 2024 macro landscape with following key pointers:
GDP growth : Q3CY24 GDP growth saw some softness on account of slower growth in government capex, slowing credit growth and some weakness in urban consumption. Capex growth was slower on account of elections. Based on historical trends, capex growth tends to be slower in first half (H1) of an election year, but picks up sharply in second half (H2) of that fiscal. On the other hand, slow credit growth can be attributed to restrictive RBI policies on unsecured lending. On the consumption side, while urban consumption has shown some weakness.
India’s Real GDP is projected to grow ~6.5% p.a. over the next 5 years.
• Credit and Deposit growth: Credit and Deposit growth saw significant divergence during first half of, 2024 amid strong credit growth before converging in November. Credit growth fell sharply in second half of the year on account of RBI imposed restrictions on unsecured lending. Expected monetary easing in CY25 may help revive credit growth.
• Liquidity: Liquidity conditions remained comfortable during most part of the year. RBI at its December, 2024 MPC announced a cut in CRR (Cash Reserve Ratio) by 50 bps in two tranches (25 bps each) effective Dec 14, 2024 and Dec 28, 2024 respectively in order to infuse more liquidity into the system.
• Inflation: Core inflation remained benign and has stayed below 4% over the past 12 months. On the other hand, food inflation which has been a cause of concern for the central bank is expected to stabilize going forward providing room for a supportive monetary policy in 2025.
• Currency & Forex Reserves: India’s Forex Reserves continue to remain robust while INR has been resilient on the back of stable macro environment. While, INR has shown some weakness post US elections but it may do relatively better in 2025 post the recent US Dollar rally.
• India’s Twin Deficits: Current Account Deficit (CAD) & Fiscal Deficit have remained under control. Government is expected to remain committed to the projected fiscal glide path while CAD is expected to remain contained around 1% of GDP supported by benign crude oil prices and government’s focus on manufacturing through Production Linked Incentive (PLI) & other initiatives.
• Market Performance: Indian equities did well on a CYTD basis with Nifty 50, Nifty Midcap 150 and Nifty Smallcap 250 gaining 9.2%, 23.71% and 26.75% respectively (as on Jan 01, 2025). Among sectors Healthcare, Telecom & Power were the top performers while FMCG and Banks underperformed. PSUs as a cohort outperformed. On Style front, Value outperformed while High Beta and Growth underperformed.
• Flows & Supply: Domestic Institutional Investors (DII) were strong buyers in the equity secondary market while FPIs turned net buyers at the margin. Monthly Systematic Investment Plan (SIP) flows in Mutual Funds (MFs) continue to see secular growth and crossed Rs 25,000 crores mark in October, 2024. Notably, MFs contributed to ~80% of net flows by DIIs in, 2024 on a CYTD basis.
On the supply side, 2024 witnessed record primary issuances (Rs 3.4 trillion CYTD) through IPOs, FPOs, OFS and QIPs. We may see this momentum to continue going into 2025 and may keep up with the demand given the strong pipeline.
• Earnings & Valuations: After four consecutive years of healthy double-digit growth, earnings growth witnessed some moderation in past 2 quarters and FY25 full year earnings growth is expected to close in single digits. If we look beyond FY25, consensus estimates see a double-digit earnings growth for FY26 and FY27. The strength of earnings trajectory across different sectors and market caps will drive respective index performance. On the Valuations front, India’s premium relative to world has come down while it remains higher relative to EM basket primarily on account of China de-rating. Based on 12-M forward PE (Price to Earnings) multiple, market cap valuations continue to trade at a premium to their respective LTA (Long Term Average). However, the recent correction in equities has made the valuations more palatable from a medium-term standpoint.
Source: compiled from the internet
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