The Indian stock market has experienced remarkable growth in 2024, showcasing a robust performance across various metrics. The National Stock Exchange (NSE) reported significant increases in listings, market capitalisation, and investor participation. This growth reflects a positive trend in the Indian economy and investor confidence. As of December 31, 2024, the NSE’s annual report highlights a thriving market environment that has attracted both domestic and international investors.

Surge in Listings and Market Capitalisation

The NSE has seen a substantial rise in the number of companies listed. By the end of 2024, a total of 2,671 companies were listed on the exchange, an increase from 2,527 in 2023. This growth in listings has contributed to a remarkable surge in market capitalisation. The total market capitalisation reached Rs 438.9 lakh crore (approximately USD 5.13 trillion), marking a 21.5 percent increase from Rs 361.05 lakh crore (USD 4.34 trillion) at the end of the previous year.

This upward trajectory indicates a healthy appetite for investment in the Indian market. The increase in market capitalisation is not just a number; it reflects the overall economic growth and the potential of Indian companies to attract investment. The rise in listings and capitalisation is also a sign of confidence among investors, who are increasingly looking to participate in the Indian equity markets.

Record Fund Mobilisation Through IPOs

In 2024, the Indian stock market witnessed a significant influx of funds through Initial Public Offerings (IPOs). A total of Rs 1.67 lakh crore was raised, with 90 companies successfully listing on the Main Board. The standout performer was Hyundai Motor India Ltd, which raised a record Rs 27,859 crore, setting a new benchmark for future IPOs.

The Small and Medium Enterprises (SME) segment also demonstrated strong activity, with 178 companies raising Rs 7,348 crore through IPOs. This diversification in fundraising showcases the growing interest in various sectors of the economy. The total amount mobilised through primary equity markets, including IPOs, Follow-on Public Offers (FPOs), and rights issues, reached approximately Rs 3.98 lakh crore. This robust fundraising environment indicates a thriving market that is conducive to business growth and expansion.

Increase in Investor Participation

Investor participation in the Indian stock market has seen a remarkable increase in 2024. The number of investors surged by 27.2 percent from the previous year, reaching 10.9 crore investors as of December 26, 2024. This increase reflects a growing interest in equity investments among the Indian populace.

The rise in investor numbers is a positive sign for the market, indicating that more individuals are looking to invest in stocks as a means of wealth creation. Additionally, passive funds that track Nifty indices have seen a significant increase in their Assets Under Management (AUM), growing from Rs 5.9 lakh crore in December 2023 to Rs 7.6 lakh crore by November 2024. This trend towards passive investing highlights a shift in investment strategies among Indian investors, who are increasingly opting for low-cost, diversified investment options.

NSE’s Global Standing and Future Prospects

On a global scale, the NSE has solidified its position as a leading stock exchange. It ranks fourth globally in terms of market capitalisation and holds the top position in equity derivatives. The exchange increased its global share of equity derivative contracts to 82 percent in 2024, up from 74 percent in 2023. This growth in derivatives trading reflects the increasing sophistication of the Indian market and its ability to attract international investors.

Moreover, the NSE has made strides in the municipal bond and social impact sectors, raising Rs 1,058.9 crore from six issuances. Notable issuances came from the Rajkot Municipal Corporation and Ahmedabad Municipal Corporation, indicating a growing interest in socially responsible investments. As the Indian stock market continues to evolve, it is poised for further growth, driven by increasing investor participation and a strong economic outlook.

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