From Trent, BEL To IndusInd Bank, Asian Paints: Stocks That Surprised And Disappointed Markets In 2024
Despite a strong start, the Nifty 50 index saw a decline after Sept. 27, with 44 companies initially outperforming, before falling nearly 9% due to expensive valuations and geopolitical factors.
From the biggest surprise in over a decade, 2024 turned out to be disappointing compared to last year for Nifty 50 companies.
The Nifty 50 index saw a mixed performance this year, with some stocks surpassing analysts’ expectations and others falling below predictions. Forty-four companies out of the 50-stock index exceeded analyst estimates when India’s benchmark index closed at a record high on Sept. 27. The Nifty rallied 20.5% since the beginning of the year to that date. However, the market entered a correction zone after the peak, reducing the outperformers to 30 by Dec. 24.
Since Sept. 27, the Nifty has fallen nearly 9%, marginally recovering after falling more than 10%. A correction zone refers to a market condition where an index or stock falls 10% or more from its recent peak.
This decline has been attributed to expensive valuations and foreign portfolio investor sell-offs triggered by geopolitical uncertainties, including Donald Trump’s re-election and tensions in the Middle East.
NDTV Profit analysed this trend by shortlisting Nifty companies covered by at least 10 analysts tracked by Bloomberg.
The Outperformers
Trent Ltd. emerged as the top-performing Nifty company in 2024, exceeding Bloomberg analysts’ expectations by 175%. This rally was driven by the company's strong financial results and aggressive retail outlet expansion, boosting investor confidence.
Navratna Public Sector Bharat Electronics Ltd. (BEL) followed Trent as the second-best performer, supported by significant government defence expenditure and securing large orders. Other notable outperformers included Mahindra & Mahindra Ltd. (M&M), Bharti Airtel Airtel Ltd., Bajaj Auto Ltd. and Wipro Ltd.
The Underperformers
IndusInd Bank was the worst performer among the Nifty companies, with its shares 45% below the 12-month price target predicted by analysts. Challenges in its microfinance portfolio significantly impacted its financial performance throughout the year.
Asian Paints ranked as the second-worst performer, with shares still 28% below their price target. Subdued demand during the year affected the paintmaker’s financial results. Bajaj Finance, Hindustan Unilever Ltd. (HUL), and HDFC Life Insurance Ltd. followed, underperforming by 23.7%, 17.3%, and 16.4%, respectively.
