2024 was an eventful one for investors. The Nifty 50 and Sensex delivered gains of 8.8% and 8.2%, respectively, while broader markets outperformed. The Nifty Midcap 100 and Smallcap 100 indices rose by more than 20%.

However, the final quarter gave investors whiplash, with the Nifty 50 declining nearly 12% from its September peak. Disappointing quarter results and high foreign fund outflows in October and November drove markets down. Still, the year ended with positive returns, marking the ninth consecutive year of gains for the Indian equity market. 

Of the 130 industries tracked on Trendlyne’s industry dashboard, 87 outperformed the Nifty 50 index in 2024. In this Chart of the Week, we highlight the top-performing industries and their major contributors over the past year.

Manufacturing and industrial sectors see steady growth in 2024

India's manufacturing and industrial sectors were the stars of 2024. Industries like heavy electrical equipment, consumer electronics, industrial machinery, and other electrical equipment rose over 70% in the past year.

The manufacturing PMI consistently stayed above the 50-mark, indicating sustained expansion in these industries. Increasing foreign investments, an expanding domestic market, and government initiatives like ‘Make in India’ and ‘Atmanirbhar Bharat’ drove this growth. 

Among standout companies in these industries, Siemens (heavy electrical equipment) rose 39.8% over the past year. It also reported strong financial performance over the past 12 months. Its trailing twelve month (TTM) revenue and net profit increased by 38.5% and 13.7%. The surge in demand for electrification and data centers, driven by advancements in artificial intelligence (AI), led to high growth.

Dixon Technologies (consumer electronics) capitalized on the PLI scheme to expand its mobile phone manufacturing segment, boosting its revenue share in this category from 12% in FY20 to 62% in FY24.

Jyoti CNC, a metal cutting CNC machines manufacturer, launched its IPO in January 2024. The IPO received a strong response from investors, with an overall subscription of 40.5 times. Since its listing, the company has delivered returns of 260.9%. The rally is fueled by the company's strong financial performance, growing order book, and rising global demand for CNC machines, especially in aerospace. Jyoti CNC's total order book reached Rs 4,289.3 crore by the end of Q2FY25.

Similarly, Waaree Energies, a leading player in the other electrical equipment industry, launched its IPO in October 2024. As India's largest solar photovoltaic (PV) module manufacturer, the IPO saw high demand and was oversubscribed 76.3 times, including 11.3 times by retail investors. Since its debut, the company has delivered impressive returns of over 73.6%. As of September 30, 2024, its order book stood at 20 GW.

Financial services surged due to strong foreign inflows and increased retail participation

The banking and finance sector, including industries like exchanges, capital markets, and other financial services, saw notable performance improvements over the past year. 

In 2024, strong foreign institutional inflows (in seven out of 12 months) and increased retail participation drove India's stock markets to record highs. New demat accounts rose 33% in 2024 compared to 2023, bringing the total to 18.5 crore.

Top performers from exchanges, capital markets, and other financial services industries include Bombay Stock Exchange (BSE), Multi Commodity Exchange, Motilal Oswal, KFIN Technologies and Central Depository Services (CDSL). 

BSE shares surged 158.6% in 2024, fueled by its expansion of derivatives offerings and the anticipation of the National Stock Exchange’s (NSE) IPO. SEBI's regulatory changes favoring BSE's weekly Sensex options and strong financial performance also contributed to this growth. BSE’s TTM revenue and net profit grew by 17.1% and 119.3%, respectively.

CDSL maintained its dominant position with a 73% market share in demat accounts (September 2024). NSE's potential IPO boosted positive sentiment toward market infrastructure firms like CDSL, anticipating benefits from increased market activity.

Credit rating agency CRISIL's share price rallied by over 41% in 2024 after it acquired a 4% stake in Online PSB Loans (OPL) for Rs 33.3 crore, enhancing its presence in the digital credit infrastructure ecosystem. The company also reported strong financial results over the past year, with a 10.4% TTM net profit increase, and maintained consistent dividend payouts.

The services sector thrived due to rising demand and increased digital adoption

The services sector, including industries like hotels, internet software & services, and internet & catalogue retail industries, showed strong performance in 2024. The PMI for the services sector surged to a four-month high of 60.8 in December 2024, up from 58.4 in November, reflecting a strong rise in demand. 

The hospitality industry benefited from a rebound in travel and tourism, while internet-based services experienced growth due to increased digital adoption and e-commerce activities. Top performers include Indian Hotel Company, Chalet Hotels, Zomato, Swiggy, Brainbees Solutions and PB Fintech.

Indian Hotels Company's (IHCL) share price surged 75.8% in 2024. The company unveiled its ‘Accelerate 2030’ strategy in November 2024, aiming to double its hotel count and revenue by FY30. This plan includes expanding its portfolio to over 700 hotels, up from 350 in FY24, and increasing consolidated revenue to Rs 15,000 crore. 

Zomato's share price rose over 74% over the past year as the company reported a 249.4% increase in net profit TTM. In December 2024, Zomato joined India's BSE Sensex index, becoming the first new-age tech company to do so.

In 2024, Swiggy and Brainbees Solutions (FirstCry) launched their IPOs in the Indian market. Both IPOs received significant investor interest and were oversubscribed. Swiggy expanded its quick commerce services via Instamart, aiming for 10-minute grocery deliveries. The company increased warehouse size and cut delivery times, with quick commerce now making up 40% of its food delivery volume since 2020.