2024 stock market outlook

2024 stock market outlook based on available information:
Global and Domestic Equity Markets in February 2024:

• In February 2024, both global and domestic equity markets experienced notable movements.
• The Indian stock market displayed mixed performance across various sectors.
• Sectors like Oil & Gas, Auto, and Realty showed resilience, while FMCG faced challenges.
• The Nifty 50 Index in India exhibited intriguing movements, providing valuable insights into market trends.
• On March 1, 2024, the Nifty 50 Index concluded at 22,338.75, recording a notable increase of 1.62%.
• The USDINR Futures for the same date stood at 82.86501.

2024 Stock Market Predictions:

• The S&P 500 generated an impressive 26.29% total return in 2023, rebounding from setbacks in 2022.
• Investors are optimistic about macroeconomic tailwinds propelling the S&P 500 to new all-time highs in 2024.
• Falling interest rates and earnings growth could be bullish for stocks.
• However, analysts express concern about bloated valuations in the technology sector and potential volatility during the U.S. presidential election.

J.P. Morgan’s Perspective:

• J.P. Morgan predicts a dip of around 20-30% in the stock market after hitting a significant peak in 2024.
• Strategists warn of significant volatility and high risks this year.

Monetary Policy and Inflation:

• The Federal Reserve made progress in bringing down inflation in 2023.
• Core PCE inflation remains above the Fed’s long-term target of 2%.
• The Fed’s projections for 2024 include core PCE inflation of 2.4% and GDP growth of 1.4%.

In summary, while there are positive indicators, investors should remain vigilant and consider potential risks in their investment decisions. The stock market’s trajectory will likely be influenced by a mix of economic factors, geopolitical events, and technological advancements.