Nifty 50 Records Impressive 7% Gain in June 2024, Largest Monthly Increase in Over Six Months; Index Surpasses 10% Growth in First Half
By Fiona Nanna, ForeMedia News
4 minutes read. Updated 3:30PM GMT Fri, 28, 2024
India’s Nifty 50 index surged by 7% in June, marking its largest monthly gain since December 2023. The index has now risen over 10% in the first half of 2024, showcasing robust investor confidence and optimism in the Indian market.
The recent bullish phase has seen the Nifty 50 consistently surpass previous record highs, with new milestones becoming a regular occurrence. On the last trading day of June, the index reached a new record high of 24,174 points, surpassing the 24,000 mark for the first time during the previous session. This strong performance reflects positive economic indicators, expectations of policy continuity, and renewed foreign inflows.
Record-Breaking Performance
June was a standout month for the Nifty 50, achieving new record highs on 12 occasions and fluctuating widely by 2,608 points. The index’s rapid ascent from 23,000 to 24,000 points in just 23 sessions marked the second-fastest 1,000-point rally in its history. Private banks, such as HDFC Bank, Axis Bank, and ICICI Bank, along with a resurgence in IT stocks, were significant drivers of this bullish momentum.
The Nifty FMCG index also recorded its largest monthly gain in 2024, rising by 4.90%. This surge was bolstered by the new coalition government’s focus on the rural economy, including financial assistance for farmers and the construction of new houses in rural and urban areas. Additionally, the government increased the Minimum Support Prices (MSP) for 14 Kharif crops for the 2024–2025 season.
Political Stability Boosts Market Confidence
The unexpected results of the Lok Sabha 2024 elections on June 4 initially led to the Nifty 50 experiencing its worst intraday performance in four years. However, the index swiftly rebounded as the formation of a BJP-led NDA government reassured investors of policy continuity and political stability. Foreign portfolio investors (FPIs) returned to the Indian markets with vigor, buying 188 billion rupees ($2.3 billion) of shares by June 27, breaking a two-month selling streak.
From its low of 21,281 points on June 4, the index surged by 12.77% over the next 17 sessions, with only minor declines on three days. Despite global uncertainties such as the Federal Reserve’s revised rate cut projections, escalating tensions in the Middle East, rising crude oil prices, and a stronger dollar, investor sentiment remained resilient.
Strong Performance in the First Half of 2024
The Nifty 50’s performance in the first half of 2024 outpaced the same period in 2023, with a robust gain of 10.50%. Leading the charge were auto stocks, followed by financials. Mahindra & Mahindra emerged as one of the top gainers, with an impressive increase of 66%. Adani Ports & SEZ saw a rally of 44.3%, while Shriram Finance, Bajaj Auto, Bharti Airtel, Power Grid Corporation, Hero MotoCorp, BPCL, ONGC, Tata Motors, SBI, and Coal India all posted gains ranging from 30% to 42%.
This strong performance underscores the Indian market’s resilience and investor confidence, setting a positive tone for the remainder of 2024.
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