Teji Mandi

The year 2024 has brought significant changes and events for investors, shaping market trends at both global and domestic levels. From the U.S.

elections and changes in Federal Reserve policies to India’s Lok Sabha elections and other economic and political decisions, these events have had a direct impact on the stock market. 

Major Global and Domestic Events Union Budget 2024

In February 2024, an interim budget was presented ahead of the Lok Sabha elections, with a focus on social and rural development. The Union Budget 2024-25 allocated Rs 11,11,111 crore (3.4% of GDP) for infrastructure development.

Agriculture and allied sectors received Rs 1.52 lakh crore, healthcare Rs 89,287 crore, and education Rs 1,25,638 crore. 

RBI’s Monetary Policy

The Reserve Bank of India (RBI) influences the market directly through its monetary policies. In its latest decision on December 6, 2024, the RBI kept the repo rate unchanged at 6.5% for the 11th consecutive time. 

Lok Sabha Elections 2024

Historical data shows that the Nifty index typically rises by an average of 13% in the six months preceding the Lok Sabha elections. Although PM Narendra Modi secured a third term, the BJP won fewer than 400 seats. 

Geopolitical Tensions

Geopolitical conflicts, such as the Israel-Iran and Israel-Hezbollah disputes, pushed global crude prices higher, directly impacting the Indian stock market. The Nifty and Sensex saw declines in September 2024 as foreign investors withdrew funds due to uncertainty.

December 19 Market Correction

On December 19, 2024, the Sensex fell by 964.15 points, and the Nifty dropped to 23,951.70. This correction followed the U.S. Federal Reserve’s 25-basis-point rate cut, coupled with limited indications of further cuts in 2025. 

Impact of U.S. Elections The 2024 U.S. Presidential elections significantly impacted Indian stock markets. 

Wrapping Up

The key events of 2024, including the Lok Sabha elections, geopolitical tensions, and central bank policies, created significant volatility in the Indian stock market. However, the resilience of the Indian economy and long-term investor confidence helped stabilise the market.

For investors, 2024 reinforced the importance of diversification and risk management. Despite short-term fluctuations, a strategic, long-term investment approach proved rewarding.

Moving forward, staying informed about economic policies and global events will be crucial for navigating market challenges.