Top Gainers 2024: Stocks That Ruled Nifty50 Last Year And Outlook For 2025 - Can Sensex Climb Mount 1 Lakh?

The year 2024 was a blockbuster one for Indian markets as the benchmark indices Nifty50 and Sensex hit record highs at 26,277.35 and 85,978.25 levels, respectively. However, the Sensex and the Nifty retreated from the highs and closed at 78248.13 and 23644.9 on December 31.

Ravi Singh, Senior Vice President - Retail Research at Religare Broking Ltd. told Outlook Money that the decline witnessed in the Indian markets was caused by a combination of domestic and global factors such as a disappointing earnings season, continued selling by Foreign Institutional Investors (FIIs) and weakened investor confidence.

“After Q2 FY25, the Nifty 50 and Sensex witnessed a decline due to a combination of domestic and global factors. Disappointing corporate earnings, with most of the Nifty 50 companies reporting lower-than-expected profits, led to earnings downgrades and target price cuts. Persistent foreign institutional outflows, driven by rising U.S. Treasury yields and concerns over fewer rate cuts by the U.S. Federal Reserve, further weakened investor confidence,” Singh said.

Even amid the highs and lows of the market five stocks that are constituents of the Nifty50 index have managed to give returns of up to 137 per cent in 2024. Here’s a look at five Nifty stocks which rallied the most in 2024:

Trent

Tata Group company Trent’s stock emerged as the top-gainer among Nifty stocks in 2024. The stock gave multibagger returns, rallying 137.27 per cent in 2024. Trent is an Indian retail company which has many brands under its umbrella such as Westside, Zudio, and Star. The company deals in the retail of apparel, footwear, accessories, and Fast-Moving Consumer Goods (FMCG), fresh produce through its hypermarket retail chain ‘Star Market’. Singh commented on Trent’s performance and said that the stock’s growth trajectory is fuelled by factors such as robust financial performance and aggressive retail expansion.

“This marks a remarkable growth trajectory for a stock that has delivered positive returns annually since 2014. Its impressive growth trajectory is fuelled by robust financial performance, aggressive retail expansion, and scaling up of its Star business,” Singh said.

Mahindra & Mahindra

Shares of automotive major Mahindra & Mahindra gained 76.54 per cent in 2024. The company is engaged in the manufacturing of automobiles. The company manufactures vehicles across categories such as Multi-Utility Vehicles, Light Commercial Vehicles, and three-wheelers. Singh told Outlook Money that the stock experienced a breakout above the Rs 1700 level in 2024 and marked its best performance since 2009. He added that factors such as the company’s strategic shift towards electric vehicle manufacturing and the expansion of its market share in the SUV segment led to the growth of the stock in 2024.

“The stock has experienced a remarkable breakout above the Rs 1700 level, yielding impressive 76 per cent returns this year. This standout performance marks its best year since 2009, driven by the automaker's strategic shift towards electric vehicles (EVs) and significant gains in the SUV segment market share,” Singh said.

Bharat Electronics

State owned aerospace and defence electronics company, Bharat Electronics’ stock rallied 58.5 per cent in 2024. Singh said that the surge witnessed in the price of the stock in 2024 was caused by robust government defence spending and significant order inflow. The stock was also supported by a positive moving average in 2024.

“Bharat Electronics (BEL) witnessed a strong bullish breakout in December 2023, yielding nearly 60% gains in 2024. This surge was fuelled by robust government defence spending and significant order inflows. Additionally, a positive moving average crossover supported the stock's momentum, making BEL one of the top performers in the Nifty 50,” Singh said.

Bharti Airtel

Telecom major Bharti Airtel’s shares gained 56.72 per cent in 2024. Singh said that Airtel's expanding subscriber base amid other telecom operators losing subscribers underscores the company’s fundamental strength. Singh added that the company has also managed to navigate its ongoing legal battle. The company had filed a curative petition before the Supreme Court against a 2019 ruling which added the non-telecom revenue of telecom companies to the adjusted gross revenue (AGR) for calculating licence fees and spectrum usage charges payable to the government.

“Notably, it has navigated the ongoing legal battle surrounding the curative petition filed at the Supreme Court, seeking to overturn the penalty and interest imposed by the September 2019 ruling. This steadfast growth underscores the company's fundamental strength. Bharti Airtel's October performance stood out with net subscriber additions, contrasting with rivals Jio and Vodafone Idea, which experienced subscriber losses,” Singh told Outlook Money.

Sun Pharmaceutical

Generic pharmaceutical maker Sun Pharma’s shares gained 49.68 per cent in 2024 on the NSE. The company is a maker of pharmaceutical formulations and Active Pharmaceutical Ingredients (APIs). Singh said that the stock outperformed its peers such as Dr Reddy’s Laboratories and Cipla. He added that despite the company’s September quarter sales being impacted, optimism regarding the stock has prevailed.

“Sun Pharma's stock skyrocketed 49 per cent in 2024, following a breakout above Rs 1250, outperforming peers Dr Reddy's and Cipla. Despite Q2 US sales being impacted by regulatory issues at its Mohali plant, optimism prevails,” Singh said.

How Benchmark Indices Are Expected To Perform In 2025

Singh projected that if the current growth trajectory of the markets persists the Nifty could reach 27,500 to 28,000 in 2025. On the other hand, the Sensex is expected to touch a lifetime high at the 1,00,000 level.

“The outlook for Nifty 50 and Sensex in 2025 suggests modest growth, influenced by factors such as corporate earnings, government policies, market valuations and global economic trends. If the current growth trajectory persists, some forecasts suggest the Nifty could reach levels between 27,500 and 28,000, while the Sensex may aim for around 100,000,” Singh told Outlook Money.

Singh advised investors to remain cautious and closely track events which can potentially influence market sentiments.

“Investors should remain cautious, closely tracking developments in inflation, interest rates, and geopolitical events that could influence market sentiment,” Singh said.